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Federal Reserve (Fed) Chair Jerome Powell mentioned in an announcement that the US Justice Division has threatened prison fees in opposition to him in connection together with his Senate Testimony final June, throughout which he mentioned the estimated $2.5 billion renovation.
“On Friday, the Division of Justice served the Federal Reserve with grand jury subpoenas, threatening a prison indictment associated to my testimony earlier than the Senate Banking Committee final June,” Powell mentioned.
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
In line with Powell, the transfer is unprecedented and a direct problem to the Fed’s independence.
The probe’s launch by the US legal professional’s workplace in Washington, authorized in November by Jeanine Pirro, a President Trump ally appointed final 12 months to run the workplace, features a evaluation of Powell’s public testimony and an examination of spending information linked to the mission.
Trump Opens New Authorized Entrance Towards Fed Chair Powell Amid Fee Lower Disputes
The current investigation now opens a significant new authorized entrance in opposition to Powell, whom Trump has repeatedly attacked for resisting calls for to sharply reduce rates of interest.
President Trump has repeatedly and publicly threatened to fireplace the Fed chair, regardless of nominating him in 2017, and has raised the prospect of authorized motion over the renovation, which he described as “incompetence.”
Regardless that Powell stands and respects accountability, he has repeatedly warned that the motion should be seen in its broader political context of the administration’s threats and ongoing stress.
“This new menace just isn’t about my testimony final June or in regards to the renovation of the Federal Reserve buildings. It isn’t about Congress’s oversight function,” he mentioned.
As a substitute, Powell immediately linked the menace to financial coverage choices. “These are pretexts. The specter of prison fees is a consequence of the Federal Reserve setting rates of interest primarily based on our greatest evaluation of what’s going to serve the general public, somewhat than following the preferences of the President,” he mentioned.
Powell has now mentioned that he would proceed in his function with out yielding to stress.
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