Jerome Powell Says DOJ Probe is Political Retaliation

Powell under investigation over Fed headquarters renovation

*Federal Reserve Chair Jerome Powell revealed he is the subject of a criminal investigation. The probe stems from his June 2025 congressional testimony and the Fed’s $2.5 billion renovation project. The U.S. Department of Justice issued subpoenas on January 9, triggering a public response.

Powell denied wrongdoing and suggested the investigation is a political move by the Trump administration. He called the charges a “pretext” designed to force the Fed to follow White House demands on interest rates.

Powell accuses Trump of politicizing monetary policy

In a video statement, Powell emphasized that the DOJ’s action threatens the Fed’s independence. He warned that central bank policy could become vulnerable to political intimidation.

“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.

Trump’s long-standing feud with the Federal Reserve

This investigation follows years of tension between Powell and former President Trump. Trump appointed Powell in 2018 but quickly turned on him for resisting aggressive rate cuts.

Now in his second term, Trump has renewed his push for lower interest rates to stimulate the economy. Powell has held firm, citing data and the Fed’s dual mandate of stable prices and full employment.

What triggered the DOJ’s criminal probe?

The DOJ is reportedly examining whether Powell misled lawmakers about the cost and scope of a renovation project. The multi-year effort aims to modernize historic Federal Reserve office buildings.

Powell claims the Fed has kept Congress informed through testimony and disclosures. He stated that the allegations are cover for political retaliation, not genuine legal concerns.

Source: Jerome Powell Says DOJ Probe is Political Retaliation | WATCH