Heads up, money geeks! 🚨 This week, the U.S. Federal Reserve's boss, Jerome Powell, dropped a bombshell: he's under investigation by the Department of Justice over the Fed’s multi-billion-dollar headquarters renovation.
In a statement posted Sunday on the Fed’s website, Powell revealed that the DOJ served grand jury subpoenas last Friday, “threatening a criminal indictment related to my testimony before the Senate Banking Committee last June.”
Powell warned that this unprecedented move reflects “the administration’s threats and ongoing pressure.” He insists that monetary policy should be guided by economic evidence, not politics, and that the Fed must remain independent in setting interest rates.
Since taking office in January 2025, President Donald Trump has urged faster rate cuts—criticisms that highlighted tension between the White House and the Fed. Powell, first appointed in 2018 and reappointed in 2022, stressed his respect for the rule of law and pledged to continue his work “with integrity and a commitment to serving the American people.”
The U.S. Attorney’s Office for the District of Columbia is now overseeing the investigation. With Powell’s term running through May 2026, the stage is set for a dramatic showdown over the Fed’s independence at a critical time for the U.S. economy. 💼🗽
Reference(s):
cgtn.com
