Powell Says Fed Received DOJ Subpoenas, Trump Rejects Link To Interest Rates
Fed Reserve Chair Jerome Powell stated the Justice Department served the central financial institution with grand jury subpoenas and threatened a legal indictment, a uncommon escalation that places the Fed’s independence and danger sentiment, again on each macro dealer’s display screen.
In a video posted Sunday, Powell stated federal prosecutors are probing his June Senate testimony tied to the $2.5B renovation of the Fed’s Washington headquarters.
Powell framed the transfer as retaliation for holding charges greater than President Donald Trump desires, saying, “The menace of legal prices is a consequence of the Federal Reserve setting rates of interest primarily based on our greatest evaluation of what is going to serve the general public, somewhat than following the preferences of the President.”
Trump Criticizes Powell While Downplaying Investigation
He stated the DOJ served the Fed “with grand jury subpoenas, threatening a legal indictment associated to my testimony earlier than the Senate Banking Committee final June.”
Trump, speaking to NBC News, stated he had no information of the investigation and swiped at Powell’s management. “I don’t know something about it, however he’s definitely not superb on the Fed, and he’s not superb at constructing buildings,” he stated.
Asked if the subpoenas had been meant to strain Powell on rates, Trump stated, “No. I wouldn’t even consider doing it that means.” He additionally stated the subpoenas had nothing to do with rates of interest.
Warren Accuses Trump Of Using DOJ To Pressure Fed
The investigation follows months of political sparring over the renovation, together with a July 2025 referral from Rep. Anna Paulina Luna urging the DOJ to research Powell for potential perjury and false statements tied to that testimony.
On Capitol Hill, Republican Sen. Thom Tillis stated he would block confirmations of future Fed nominees till the matter is resolved, warning the combat now raises questions on DOJ independence as nicely.
Democratic Sen. Elizabeth Warren stated Trump is “abusing the authorities of the Department of Justice like a wannabe dictator so the Fed serves his pursuits, alongside together with his billionaire pals.”
Markets handled the headlines as a contemporary institutional danger, with merchants watching the greenback, price expectations and volatility gauges that always feed straight into crypto positioning by liquidity and leverage.
Powell’s chair time period ends in May 2026, and he can keep on the Fed board till 2028, leaving Trump’s subsequent chair decide as a looming catalyst for charges, the greenback and Bitcoin’s macro bid.
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