U.S. Federal Reserve Chair Jerome Powell is under criminal investigation by the Department of Justice regarding his 2025 congressional testimony about a controversial headquarters renovation project, sparking a high-stakes clash between central bank independence and political pressure. 🔍
Subpoenas & Political Tensions
Powell confirmed late Sunday that federal prosecutors served grand jury subpoenas threatening criminal charges tied to his June 2025 Senate Banking Committee appearance. The probe centers on a multi-billion-dollar renovation of historic Fed buildings – a project critics call excessive amid economic uncertainty.
Trump vs. Powell: Round Two
The investigation comes as President Donald Trump, who took office in January 2025, continues public attacks on Powell's interest rate policies. 🗣️💥 'This is about whether monetary policy will be directed by political pressure,' Powell stated, framing the probe as an unprecedented challenge to Fed independence.
Timeline at a Glance
2018: First appointed Fed chair by Trump
2022: Reappointed by President Biden
Jan 2025: Trump begins second term
May 2026: Powell's term expiration date
Legal experts call this the first criminal investigation against a sitting Fed chair in modern history. With Powell vowing to continue his duties 'with integrity,' this showdown could redefine central banking in the 2026 political landscape. ⚖️🇺🇸
