Federal Reserve Chairman Jerome Powell revealed Sunday that the Department of Justice (DOJ) has issued a subpoena to the central bank, threatening it with a potential criminal indictment over his testimony on the Fed's building renovations.
The move marks an unprecedented escalation in President Donald Trump's battle with the Federal Reserve, a self-sufficient agency he has repeatedly attacked for not cutting interest rates quickly enough. The subpoena relates to Powell's June testimony before the Senate Banking Committee regarding the $2.5 billion renovation of two office buildings, a project that Trump criticized as excessive this summer.
In a video statement, Powell described the threat of criminal charges as "pretext" to undermine the Fed's independence in setting interest rates. He emphasized that the Fed must set interest rates based on evidence and economic conditions, rather than being influenced by political pressure or intimidation.
The DOJ has instructed its US Attorneys to prioritize investigating any abuse of taxpayer dollars, according to a statement released Sunday. However, the Justice Department declined to comment further on the specific case.
The potential indictment has drawn concern from one Republican senator, Thom Tillis, who stated that he will oppose any future nominee to the central bank until "this legal matter is fully resolved." The senator warned that if there were any remaining doubt about Trump's administration pushing to end the Fed's independence, it should now be clear.
The development raises questions about the credibility of the Department of Justice and the potential consequences for Powell and other Fed officials.
The move marks an unprecedented escalation in President Donald Trump's battle with the Federal Reserve, a self-sufficient agency he has repeatedly attacked for not cutting interest rates quickly enough. The subpoena relates to Powell's June testimony before the Senate Banking Committee regarding the $2.5 billion renovation of two office buildings, a project that Trump criticized as excessive this summer.
In a video statement, Powell described the threat of criminal charges as "pretext" to undermine the Fed's independence in setting interest rates. He emphasized that the Fed must set interest rates based on evidence and economic conditions, rather than being influenced by political pressure or intimidation.
The DOJ has instructed its US Attorneys to prioritize investigating any abuse of taxpayer dollars, according to a statement released Sunday. However, the Justice Department declined to comment further on the specific case.
The potential indictment has drawn concern from one Republican senator, Thom Tillis, who stated that he will oppose any future nominee to the central bank until "this legal matter is fully resolved." The senator warned that if there were any remaining doubt about Trump's administration pushing to end the Fed's independence, it should now be clear.
The development raises questions about the credibility of the Department of Justice and the potential consequences for Powell and other Fed officials.
the DOJ serving a subpoena on the Fed chairman over some building renovations? that's just crazy talk... i mean, i get it, trump's been all up in arms about the Fed not cutting rates fast enough, but this? taking it to criminal charges level? that's just ridiculous... 
and now powell's saying it's a pretext to undermine the fed's independence? come on, dude... you can't make this stuff up... 
but idk what's going on here, it feels like trump is trying to strong-arm the fed into doing what he wants. and now the senate senator thom tillis is all like "hey wait a minute" 
$2.5 billion out of what? like 10 trillion dollars? 
and now they're threatening to indict him over it?! Jerome Powell is low-key the real MVP, just standing up for his own independence 
this whole thing is giving me so much #HypeRiderVibes 
I'm kinda surprised the DOJ is taking this kind of action against Jerome Powell. Like, isn't their job to enforce laws or something? 
And now we're left wondering if Powell and other Fed officials will be held accountable for their actions... or if they'll just get swept up in the drama. 
. I mean, who would've thought that the DOJ was gonna go after the Fed Chairman over some renovation stuff? It's just crazy. And Jerome Powell, he's takin' it like a champ, callin' out the DOJ for tryin' to undermine the Fed's independence. I feel him, you know? The Fed needs to be able to set interest rates without all this drama and pressure from the White House.
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I mean, can't Trump just chill already? 
I've seen more scandalous stuff on a Kardashian divorce. 
Can't we just focus on something actually important, like who's gonna win the next Super Bowl or what flavor of ice cream will be the next big thing? 
But seriously, can't we just have a calm discussion about this stuff without it escalating into full-on drama fest? 
. It's hard to see how this ends well for anyone involved 
that the DOJ is trying to subpoena the Federal Reserve over Jerome Powell's testimony on those renovations... but at the same time, I kinda get why they're doing it 
. It sounds like politics over principles and it makes me wonder if anyone's above the law anymore 
. I mean, can't we all just get along and respect each other's differences? It seems like this whole thing is just going to end in chaos 
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. We need to focus on getting facts and evidence-based decision-making back into play, not just using subpoenas and threats as a way to silence critics 
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. BUT AT THE SAME TIME, I GUESS WE NEED TO WAIT AND SEE HOW THIS PLAY OUTS BEFORE WE CAN JUDGE ANYTHING. IT'S LIKE, WHAT ARE THEY ACTUALLY CHARGING HIM WITH AGAINST? 