U.S Fed Chair Powell Faces Federal Probe
In a statement posted on the Fed’s website, Powell disclosed that the Department of Justice issued grand jury subpoenas on Friday, "threatening a criminal indictment related to my testimony before the Senate Banking Committee last June. That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings."
Powell warned, "This unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure." He added, "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President."
"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions -- or whether instead monetary policy will be directed by political pressure or intimidation," Powell said.
He emphasized that he "will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people."
The probe is being overseen by the U.S. Attorney’s Office for the District of Columbia, according to local media reports.
Since taking office in January 2025, President Donald Trump has repeatedly attacked Powell for resisting deeper and faster interest rate cuts. Powell was first appointed Fed chair by Trump in 2018 and later reappointed by former President Joe Biden in 2022. His current term runs until May 2026.
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