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Home Front: Politix
Powell Says Justice Department Served Fed With Subpoenas
2026-01-12
[Bloomberg via Yahoo] Federal Reserve Chair Jerome Powell said the US central bank had been served grand jury subpoenas from the Justice Department threatening a criminal indictment related to his June congressional testimony on ongoing renovations of the Fed’s headquarters.

In a statement released Sunday evening, Powell rejected the notion that the action was driven by his testimony or the renovation.

"Those are pretexts," Powell said. "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."
I wouldn’t be surprised if they really are presenting their best assessment, no matter how wrong their assessment might have proved to be. Which has absolutely nothing to do with grossly overspending on renovation and redecoration, even if President Trump is the first to object.
Powell added, "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."

The US dollar weakened on the news, falling against all its major counterparts, while gold extended gains to a record high. Futures on the S&P 500 Index fell 0.3%.

The unprecedented move by the Trump administration marks an escalation of Trump’s longstanding feud with the Fed chair. The president has long called for aggressive rate cuts. He has also sought to fire another Fed governor — a move that is currently tied up in the courts.
Eventually the Supreme Court will rule who is in charge. And the same for each one who does not want it to be the president. Some time after that the last case will have passed through those hallowed halls. Fortunately the Republican bench is deep, and getting deeper.
Powell said the potential indictment "should be seen in the broader context of the administration’s threats and ongoing pressure."

He said he intends to continue doing his job "with integrity and a commitment to serving the American people."
Related:
Jerome Powell 11/03/2025 US Treasury Department has announced a recession in several sectors of the economy
Jerome Powell 10/30/2025 The US Federal Reserve has lowered its base rate to 3.75-4% per annum
Jerome Powell 10/30/2025 More than 160 Republicans potentially investigated in FBI's Arctic Frost probe, House panel says

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