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1h ago

DOJ Subpoenas Federal Reserve as Powell Calls Indictment Threat an Intimidation Attempt

Powell frames the probe over his Senate testimony on a headquarters renovation as an attempt to sway interest‑rate policy.

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Die US-Notenbank Fed hat nach Angaben ihres Chefs Jerome Powell eine Vorladung vom US-Justizministerium erhalten.
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Overview

  • Federal prosecutors delivered grand jury subpoenas to the Fed on Friday and, according to Jerome Powell, warned of a possible criminal indictment.
  • The inquiry focuses on alleged false statements in Powell’s June Senate appearance about the Washington headquarters renovation, with Trump citing $3.1 billion in costs that the Fed disputes.
  • Powell rejected the case as a pretext to pressure the central bank’s independence and pledged to continue serving with integrity.
  • The confrontation follows months of pressure from President Trump for steeper rate cuts, alongside uncertainty over whether a president can remove a Senate‑confirmed Fed chair before Powell’s term ends in May 2026.
  • The New York Times reported the review includes Powell’s public remarks and renovation spending and was approved by District Attorney Jeanine Pirro, as senators split sharply on the move, with Republican Thom Tillis threatening to block Fed nominees and Democrat Elizabeth Warren accusing Trump of trying to capture the bank.