Federal Reserve Chair Jerome Powell has revealed that the Department of Justice (DOJ) has issued subpoenas to the central bank, threatening a potential criminal indictment over his testimony regarding the Fed's $2.5 billion renovation project.
The move marks an unprecedented escalation in President Donald Trump's ongoing battle with the Federal Reserve, an independent agency he has repeatedly criticized for not cutting interest rates quickly enough. The subpoena pertains to Powell's testimony before the Senate Banking Committee in June, where he discussed the Fed's office building renovations that Trump had previously described as excessive.
In a video statement, Powell emphasized that the threat of criminal charges serves as a pretext to undermine the Fed's independence when it comes to setting interest rates. "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," he said.
The Justice Department has declined to comment on any specific case, but stated that Attorney General Pam Bondi has instructed her US Attorneys to investigate any alleged abuse of taxpayer dollars. The development has raised concerns among Republicans, including Senator Thom Tillis, who has expressed opposition to future Fed nominees until the "legal matter is fully resolved".
Tillis described the situation as clear evidence that Trump's administration is attempting to end the Federal Reserve's independence and credibility. "If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none," he said.
The potential indictment has sparked a heated debate over the Fed's role in setting interest rates, with many experts warning that politicization could have far-reaching consequences for the economy.
The move marks an unprecedented escalation in President Donald Trump's ongoing battle with the Federal Reserve, an independent agency he has repeatedly criticized for not cutting interest rates quickly enough. The subpoena pertains to Powell's testimony before the Senate Banking Committee in June, where he discussed the Fed's office building renovations that Trump had previously described as excessive.
In a video statement, Powell emphasized that the threat of criminal charges serves as a pretext to undermine the Fed's independence when it comes to setting interest rates. "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," he said.
The Justice Department has declined to comment on any specific case, but stated that Attorney General Pam Bondi has instructed her US Attorneys to investigate any alleged abuse of taxpayer dollars. The development has raised concerns among Republicans, including Senator Thom Tillis, who has expressed opposition to future Fed nominees until the "legal matter is fully resolved".
Tillis described the situation as clear evidence that Trump's administration is attempting to end the Federal Reserve's independence and credibility. "If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none," he said.
The potential indictment has sparked a heated debate over the Fed's role in setting interest rates, with many experts warning that politicization could have far-reaching consequences for the economy.
this is just getting out of hand, right? so the DOJ is threatening to indict Jerome Powell and now it's all about whether the Fed can set interest rates or not... what's next? are we gonna see a Congressional hearing on whether the Fed should just give Trump a gold watch because he said so? 
i mean, come on, if they're really worried about abuse of taxpayer dollars, maybe start by looking at the last 4 years of Trump's administration instead of just one guy giving some testimony... and what's with all these Republican senators suddenly being all concerned about Fed independence when it was convenient for them before? 
this whole thing is just a big mess waiting to happen...
I mean, can you believe it? The DOJ is trying to intimidate the Fed into changing its decisions because of political pressure? 
That's not how democracy works, right? 
It's like they're trying to take away the Fed's autonomy. I'm all for accountability, but come on! 
If they want to investigate something, let them do it in a normal way, without threatening people with criminal charges. 
This whole thing is super concerning...
. The Fed's supposed to make decisions based on the economy, not some politician's whims. And if that means facing some heat from Trump's team, so be it 
.
. It's not rocket science, folks! Just follow the evidence and let the experts do their thing 
.
rather than just going after some symbolic target like the Fed. I mean, we've got real issues to address here, not just petty squabbles over some office renovations 
and what's with all this talk about "independence" anyway? I get that Trump thinks the Fed is out of touch, but a potential indictment? that's just gonna make things worse. 
. And now Trump's all over it, claiming the Fed's losing its independence? Please, if that was really happening, wouldn't we see some actual action from his admin? 
. And Tillis is totally on board with this narrative that Trump's trying to destroy the Fed's credibility? Yeah, no kidding... 
.
this is gonna be good... so we're worried about the fed getting 'intimidated' by trumps admin? like come on, it's not like they're asking to be bullied 
what's next, is trump gonna make them pay back their own renovation costs out of pocket? 
he keep sayin its excessive & now DOJ issue subpoenas threatenin criminal indictment 
wat a drama!! 
powel sayz this is all bout keepin fed indep, set rates based on econ conditions not political pressure 
and be done with it 
. 
, can't believe trump is trying to take down powell and the fed like this 
. it's not just about the renovation project, it's about who gets to make decisions on interest rates - politicians or experts 
. powell is right, we need an independent central bank making decisions based on evidence, not pressure from the white house 
. this whole thing reeks of politicization and it's scaring economists and experts alike 
