US Fed Chair Powell Under Criminal Probe, Vows Firmness | Quick Digest
US Federal Reserve Chair Jerome Powell faces a criminal investigation by the Justice Department over his congressional testimony on Fed building renovations. Powell alleges the probe is a "pretext" by the Trump administration to undermine the central bank's independence in setting interest rates. The unprecedented move has drawn widespread condemnation.
US Fed Chair Jerome Powell faces a criminal investigation by the Justice Department.
The probe relates to his testimony on a $2.5 billion Fed building renovation.
Powell calls the investigation a "pretext" to undermine the Fed's independence.
Former Fed chairs and economists condemn the move as a threat to autonomy.
The investigation escalates President Trump's conflict with the central bank.
Financial markets reacted with dollar weakening and gold gains.
US Federal Reserve Chairman Jerome Powell is currently under a criminal investigation by the US Department of Justice (DOJ), a development he publicly announced on January 11, 2026. Powell disclosed that the Fed received grand jury subpoenas and threats of criminal indictment related to his congressional testimony last summer regarding the central bank's $2.5 billion headquarters renovation project. Powell, in a video statement, characterized the investigation as a "pretext" designed to exert political pressure and undermine the Federal Reserve's crucial independence in setting interest rates. He asserted that the legal action is a direct consequence of the Fed's commitment to setting rates based on economic data rather than presidential preferences.
The investigation, reportedly authorized by Jeanine Pirro, a Trump ally and US Attorney for D.C., marks a significant escalation in President Donald Trump's ongoing conflict with Powell and the Fed over monetary policy. The unprecedented nature of the probe has drawn strong condemnation from a bipartisan group of former Fed chairs, including Janet Yellen, Ben Bernanke, and Alan Greenspan, along with numerous economists and politicians. They issued a joint statement calling the inquiry an attempt to use "prosecutorial attacks to undermine that independence
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