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Powell Says DOJ Threatened Indictment to Sway the Federal Reserve

He denies wrongdoing related to statements about building renovations.

Overview

  • Powell said the Justice Department served subpoenas to the Federal Reserve on Friday and warned that criminal charges could follow.
  • According to his account, the alleged offense concerns false testimony to the Senate about a multi‑year renovation of Fed buildings in Washington.
  • He rejected the allegation, calling the investigation an intimidation attempt and vowing to continue his duties in the public interest.
  • President Trump has repeatedly pressed for deeper interest‑rate cuts, publicly disparaging Powell and suggesting removal, though the law on firing a Senate‑confirmed Fed chair remains unclear.
  • The Fed has lowered rates in several steps based on its economic assessment, which Powell says will continue to guide policy decisions.