Overview
- Jerome Powell disclosed that the Federal Reserve received Justice Department grand-jury subpoenas requiring testimony, a step that could precede indictments.
- In a video statement, Powell said the threat of prosecution is a pretext to pressure the central bank to cut interest rates, pledging to base policy on economic conditions.
- The White House has questioned renovation spending at the Fed’s Washington headquarters, citing a $3.1 billion figure versus an initially cited $2.7 billion, a claim Powell disputes.
- Legal analysts note that removing a Fed chair requires proof of serious misconduct and cite longstanding precedent, while the Justice Department has not detailed specific charges.
- Powell’s term ends in May 2026 as President Trump intensifies criticism and explores ways to replace Fed leadership, prompting warnings about erosion of market confidence.