Federal Reserve Chair Jerome Powell announced on Sunday, January 11, 2026, that the Department of Justice (DOJ) had served the Federal Reserve with grand jury subpoenas on Friday, January 9, 2026, threatening a criminal indictment against him. The probe reportedly relates to his June 2025 testimony before the Senate Banking Committee concerning a multi-year renovation project of the Federal Reserve's headquarters. Powell vehemently rejected the premise of the investigation, labeling it an "unprecedented action" and a "pretext." He asserted that the true motive behind the criminal charges was to exert political pressure on the Federal Reserve to align its interest rate policy with the preferences of the Trump administration, rather than allowing the central bank to set rates based on economic evidence and its assessment of public interest. While respecting the rule of law, Powell emphasized the critical importance of the Fed's independence in maintaining economic stability. Following this startling revelation, global financial markets reacted swiftly. The US dollar experienced a sharp decline against major safe-haven currencies, particularly the euro and the Swiss franc. The dollar index fell, and gold prices surged to a new record high, reflecting investor anxiety over institutional stability in the United States and the potential implications for monetary policy. President Trump, while denying direct knowledge of the criminal probe, did criticize Powell's performance and the cost overruns associated with the Fed building renovation. This developing situation has intensified long-standing tensions between the Fed and the White House, sparking concerns about the future of central bank autonomy and its impact on global financial markets.