Trump's DOJ launches criminal investigation into Fed Chair Jerome Powell over testimony to Congress

The Justice Department opened a criminal investigation into Federal Reserve Chair Jerome Powell, ostensibly over his testimony to Congress about cost overruns in the Fed's building renovation project. Powell publicly denounced the investigation as retaliation for refusing to lower interest rates at Trump's request, calling it an attack on Fed independence. This unprecedented move against a sitting Fed chair drew bipartisan criticism, with even some Trump supporters calling it a red line. The investigation is widely viewed as an attempt to intimidate Powell into either complying with Trump's economic demands or leaving his position when his term as chair ends in May 2026. Three former Fed chairs—Ben Bernanke, Janet Yellen, and Alan Greenspan—issued a joint statement defending Powell and Fed independence. The DOJ investigation was formally announced through a letter to congressional leadership, citing Powell's December 2025 testimony about the Eccles Building renovation as the basis f...

"This investigation is nothing more than a transparent attempt to intimidate me and undermine the independence of the Federal Reserve. I will not be pressured into making monetary policy decisions based on political considerations." — Powell's statement released through the Federal Reserve following news of the DOJ investigation