The US Justice Department has launched a criminal investigation into Federal Reserve Chairman Jerome Powell, intensifying a long-standing power play between the central bank and President Donald Trump.
Powell revealed on Sunday that federal prosecutors had issued subpoenas to the Federal Reserve, raising the possibility of charges linked to testimony he gave before the Senate regarding renovations to Fed facilities.
Describing the investigation as “unprecedented”, Powell suggested it was politically motivated, citing repeated clashes with Trump over monetary policy and his refusal to slash interest rates despite pressure from the White House.
“This is about whether the Federal Reserve will continue setting interest rates based on evidence and economic conditions, or whether monetary policy will be directed by political pressure or intimidation,” Powell said.
He emphasized respect for the rule of law but warned that the probe must be seen in the broader context of threats to the Fed’s independence.
Trump Renews Criticism
Trump said he was unaware of the Justice Department’s actions but reiterated his dissatisfaction with Powell’s leadership.
“He’s certainly not very good at the Fed, and he’s not very good at building buildings,” the president remarked.
The Justice Department has not confirmed the investigation publicly, though reports indicate it is being overseen by the US Attorney’s Office for the District of Columbia.
The move comes amid Trump’s ongoing feud with Powell, whom he appointed in 2017 but has frequently accused of mishandling interest rate policy.
While the Fed cut rates three times in late 2025, Trump argued the reductions were insufficient and blamed high consumer costs on Powell’s decisions.
Political Fallout
Critics warn that attempts to investigate or remove Powell could undermine the Fed’s independence.
Republican Senator Thom Tillis of North Carolina said he would block any Trump nominee to the Fed Board until the matter is resolved.
“If there were any remaining doubt that advisers within the Trump administration are pushing to end the independence of the Federal Reserve, there should now be none,” Tillis said.
Democratic Senator Elizabeth Warren accused Trump of trying to oust Powell to install a loyalist. “This committee should not move forward with any Trump nominee for the Fed,” she said.
The probe follows other failed criminal cases pursued during Trump’s presidency against political figures, including former FBI Director James Comey and New York Attorney General Letitia James, which courts dismissed as lacking merit.
Rate, Like 👍, Comment 💬, Share this article, Follow us on our social media handles, and Submit your own story to get featured and earn rewards!
I have a question, if allegedly a probe is being done in such a high top level office, how is the president of a country not aware of it?🙂