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17m ago

Justice Department Subpoenas Fed and Threatens Prosecution of Chair Powell

The probe tied to his June testimony on a $2.5 billion headquarters renovation has triggered bipartisan warnings over central bank independence.

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

Overview

  • Jerome Powell said the Fed received grand jury subpoenas on Friday and that prosecutors threatened criminal charges, which he denounced as an intimidation effort to sway monetary policy.
  • The inquiry centers on alleged false statements to the Senate about the multi‑year renovation of the Fed’s Washington headquarters, with Powell calling the stated rationale a pretext.
  • Reporting names district attorney Jeanine Pirro as involved in approving the probe, while President Trump told NBC he had no knowledge of the Justice Department’s move.
  • Republican Senator Thom Tillis vowed to block Fed confirmations until the matter is resolved, and Democratic Senator Elizabeth Warren accused Trump of attempting a corrupt takeover of the central bank.
  • Markets showed sensitivity to the escalation, with the dollar weakening and gold hitting record highs, as Powell’s chair term approaches its May expiration and the White House readies a successor nomination.