Federal Reserve Chair Jerome Powell has disclosed that the U.S. Department of Justice has launched a criminal investigation into him, linking the unprecedented probe to political pressure from former President Donald Trump. Powell stated that subpoenas were served regarding his congressional testimony about renovations to Federal Reserve buildings.
Powell warned that the investigation threatens the central bank’s independence, arguing it reflects “the administration’s threats and ongoing pressure” over interest rate policy. Trump denied knowledge of the probe but reiterated his criticism of Powell’s performance. The investigation emerges as Powell’s term concludes in May, amid a long-standing feud over the Fed’s refusal to cut rates despite Trump’s public demands.
