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2026-01-12 Home Front: Politix

Powell Says Justice Department Served Fed With Subpoenas

[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."

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Posted by Frank G 2026-01-12 00:00|| E-Mail|| Front Page|| [1824 views ] Top
File under: Tin Hat Dictators, Presidents for Life, & Kleptocrats

1 Great. Trump Administration is using the same lawfare they accused the Left of using against Trump.

Remember also that Powell, whom Trump appointed à la John Bolton, would still be a member of the Fed Board of Governors until 2028 should Powell decide to stay on.

I guess the DoJ doesn't have anything else better to do.

Posted by DooDahMan 2026-01-12 03:40|| 2026-01-12 03:40|| Front Page Top

2 Tillis is rushing to their defense. If Tillis is at all dirty, it would be very dumb to raise his profile with most of America ticked off about corruption.

Posted by Super Hose 2026-01-12 06:00|| 2026-01-12 06:00|| Front Page Top

3 This POS Lizzy Borden Warren is really something else.

Trump wants to nominate a new Fed Chair AND push Powell off the Board for good to complete his corrupt takeover of our central bank.

He is abusing the law like a wannabe dictator so the Fed serves him and his billionaire friends.

The Senate must not move ANY Trump Fed nominee.

Posted by DooDahMan 2026-01-12 06:34|| 2026-01-12 06:34|| Front Page Top

4 I thought the ongoing renovations of the Fed’s headquarters was a grand example of Federal excess, like the new FBI headquarters. Who has to drag personalities into the issue?

Posted by Bobby 2026-01-12 09:06|| 2026-01-12 09:06|| Front Page Top

5 I think the story goes the bankers, the Fed, hired an assassin to kill John Adams but the shooter missed and Adams beat the shooter to a pulp with his old man cane.

Posted by mossomo 2026-01-12 13:21|| 2026-01-12 13:21|| Front Page Top

6 Winners make the rules.
That is a fact of life and how the Universe Works.
Feels good we have a winner as President again.

Posted by mossomo 2026-01-12 13:31|| 2026-01-12 13:31|| Front Page Top

Merry-Go-Blog