Powell States That the Justice Department Issued Subpoenas to the Federal Reserve

Federal Reserve Chair Faces DOJ Subpoenas Over Testimony

Photographer: Al Drago/Bloomberg

Bloomberg reports that Jerome Powell, the Chair of the Federal Reserve, revealed that the Justice Department has issued grand jury subpoenas to the central bank. These subpoenas threaten criminal charges in connection with Powell’s recent congressional appearance, where he discussed ongoing renovations at the Fed’s headquarters.

On Sunday evening, Powell issued a statement denying any link between the subpoenas and either his testimony or the renovation project.

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“These are merely excuses,” Powell stated. “The threat of prosecution stems from the Federal Reserve’s commitment to setting interest rates based on our independent analysis of what best serves the public, rather than yielding to presidential preferences.”

He further emphasized, “The core issue is whether the Fed can continue to determine monetary policy using data and economic realities, or if those decisions will be swayed by political interference or intimidation.”

Following the news, the US dollar declined against major currencies, gold prices surged to new highs, and S&P 500 futures dropped by 0.3%.

This unprecedented action by the Trump administration intensifies the ongoing conflict between the president and the Fed chair. President Trump has repeatedly advocated for significant interest rate reductions and has also attempted to dismiss another Federal Reserve governor, a matter still under judicial review.

Powell remarked that the possible indictment “should be viewed within the larger pattern of threats and sustained pressure from the administration.”

He affirmed his dedication to his responsibilities, stating he will continue to serve “with honesty and a focus on the interests of the American people.”

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