Federal Reserve Chair Jerome Powell has confirmed that he has received subpoenas from the Department of Justice, with prosecutors threatening a potential criminal indictment over his testimony regarding the central bank's $2.5 billion renovation project.
The move marks a concerning escalation in President Trump's ongoing feud with the Federal Reserve, an independent agency he has repeatedly criticized for not cutting interest rates as quickly as he prefers. Powell claimed that the investigation relates to his June testimony before the Senate Banking Committee, where he discussed the Fed's renovation plans.
According to Powell, the Justice Department is attempting to use the subpoena and threat of indictment as a pretext to undermine the central bank's independence when it comes to setting interest rates. He emphasized that monetary policy should be based on evidence and economic conditions, rather than being subject to political pressure or intimidation.
The Justice Department declined to comment on any specific case, but stated that Attorney General Pam Bondi has instructed her US Attorneys to investigate any potential abuse of taxpayer dollars. A spokesperson for U.S. Attorney Jeanine Pirro's office remained silent in response to a request for comment.
One Republican senator, Thom Tillis, expressed concern over the potential indictment and vowed to oppose future nominees to the central bank until "this legal matter is fully resolved." He described the situation as an attack on the independence and credibility of the Department of Justice.
The move marks a concerning escalation in President Trump's ongoing feud with the Federal Reserve, an independent agency he has repeatedly criticized for not cutting interest rates as quickly as he prefers. Powell claimed that the investigation relates to his June testimony before the Senate Banking Committee, where he discussed the Fed's renovation plans.
According to Powell, the Justice Department is attempting to use the subpoena and threat of indictment as a pretext to undermine the central bank's independence when it comes to setting interest rates. He emphasized that monetary policy should be based on evidence and economic conditions, rather than being subject to political pressure or intimidation.
The Justice Department declined to comment on any specific case, but stated that Attorney General Pam Bondi has instructed her US Attorneys to investigate any potential abuse of taxpayer dollars. A spokesperson for U.S. Attorney Jeanine Pirro's office remained silent in response to a request for comment.
One Republican senator, Thom Tillis, expressed concern over the potential indictment and vowed to oppose future nominees to the central bank until "this legal matter is fully resolved." He described the situation as an attack on the independence and credibility of the Department of Justice.
this whole thing feels like a power struggle between Trump's administration and the Fed, and it's getting pretty intense 
. Powell's trying to send a message that the Fed's decisions shouldn't be swayed by politics or personal agendas – we need an independent central bank that makes decisions based on evidence and economic conditions 
. The fact that they're investigating potential abuse of taxpayer dollars is definitely a valid concern, but it seems like there might be some politicking going on here too 
. If the DOJ is trying to send a message about Fed independence, maybe they should be focusing on real reforms rather than threatening indictments 
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The whole thing with Jerome Powell getting subpoenas and a potential indictment over testifying about that renovation project is just WEIRD 
. I mean, shouldn't they be focusing on some real scandal or something? 
Instead, it's like the DOJ is trying to intimidate this guy into changing his stance on interest rates. LIKE, WHAT'S THE BIG DEAL ABOUT A FEW BILLION DOLLARS?! 
It just seems so political and petty at this point 
. And now Thom Tillis is all bent out of shape over it too... it's like the whole thing is just one big game of who can be more dramatic 
. Anyway, I hope Powell can just push through and get his testimony done without any drama 
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and I'm worried about the precedent it sets for future Fed chairs. we need them to be able to make tough decisions without fear of reprisal from politicians who just don't understand how the economy works 
Not some politician's whims? And what's with all these subpoenas and threats? Sounds like a fishy situation to me... 
, but honestly it's not healthy for our economy or democracy if ppl start threatening indictments over political disagreements 
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what's really going on here? from what i've gathered, powell's just trying to do his job & make informed decisions about interest rates 
meanwhile, the justice department's like "hey, we're investigating potential abuse of funds" 
from the DOJ? That's some next level stuff 
It feels like President Trump's trying to strong-arm Powell into changing interest rates 
, which is just not how it works 
, but honestly, who doesn't want to keep their independence when it comes to monetary policy? 
! So Jerome Powell's getting threatened with a possible indictment over some renovation project? Sounds like a total witch hunt to me! The guy's just trying to do his job and make some decisions about interest rates. If Trump's beefing because the Fed isn't cutting rates as fast as he'd like, that's his problem, not Powell's.
. And what's with the whole "undermining independence" thing? It sounds like a fancy way of saying "I'm gonna investigate some shady dealings and see if anyone broke any rules" 
. If there's wrongdoing, let the investigation happen! 