Powell Says DOJ Threatened Criminal Charges as Trump Denies Knowledge
The claim stems from grand-jury subpoenas tied to his Senate testimony on the Fed’s building reconstruction.
Overview
- Jerome Powell says the Department of Justice served the Federal Reserve with grand-jury subpoenas on Friday and threatened him with criminal charges linked to his June Senate testimony.
- He attributes the action to pressure from the Trump administration over interest-rate policy and says the Fed sets rates in the public interest rather than to meet presidential preferences.
- President Donald Trump tells NBC he was unaware of any DOJ move and criticizes Powell’s performance along with the renovation project.
- Trump rejects the notion his administration is pressuring Powell, says the only pressure should be high rates, and has floated a lawsuit over the renovation plan.
- Powell’s term runs through May 2026, and prior talk of removing him has drawn concerns in commentary about the Fed’s independence.