Federal Reserve Chair Powell states that the Justice Department has issued a subpoena to the central bank and is warning of possible criminal charges

Federal Reserve Faces Legal Action Over Testimony

On Sunday, Federal Reserve Chair Jerome Powell revealed that the Department of Justice has issued subpoenas to the Federal Reserve and is threatening criminal prosecution in connection with his statements regarding the central bank’s facility upgrades.

This development marks a significant intensification in the ongoing conflict between President Donald Trump and the Federal Reserve, an institution he has frequently criticized for not reducing interest rates as swiftly as he desires.

In a recorded address, Powell described the potential criminal charges as attempts to erode the Fed’s autonomy in determining monetary policy.

“The core issue is whether the Federal Reserve can continue to base its interest rate decisions on data and economic realities, or if political influence and intimidation will dictate monetary policy,” Powell stated.

Efforts to obtain a response from the office of U.S. Attorney Jeanine Pirro were unsuccessful, as calls and messages on Sunday went unanswered.