Federal Reserve Chair Jerome Powell is facing an unprecedented criminal investigation by the US Justice Department, a move widely perceived as an attempt by the Trump administration to exert political influence over the independent central bank. The probe reportedly stems from Powell's testimony regarding the cost and scope of renovations at the Fed's headquarters in Washington D.C., and was approved by Trump ally, U.S. Attorney Jeanine Pirro. President Donald Trump has been a vocal critic of Powell, repeatedly attacking him for not lowering interest rates swiftly enough to boost the economy. Trump has also threatened Powell with a "major lawsuit" and expressed a desire to "fire his ass". In response, Powell released a resolute public statement on January 11, 2026, asserting that the threat of criminal charges was a "pretext" to influence monetary policy and reaffirming his commitment to the Fed's mandate of price stability and maximum employment without political fear or favor. The escalating tensions have drawn significant international attention. Global central bank governors, including those from the Bank of England and the European Central Bank, issued an extraordinary joint statement offering "full solidarity" to Powell and emphasizing the critical importance of central bank independence for global financial stability. Even within the Trump administration, concerns were raised, with U.S. Treasury Secretary Scott Bessent reportedly warning the President that the investigation could create a "mess" and negatively impact financial markets. This high-stakes confrontation underscores the global significance of maintaining the autonomy of major economic institutions.