The U.S. Department of Justice has launched an unprecedented criminal investigation into Federal Reserve Chair Jerome Powell, centering on his congressional testimony regarding a costly renovation of the Fed's headquarters.
This inquiry comes amid escalating tensions between Powell and President Donald Trump, who has criticized the Fed's monetary policies and suggested the investigation is retaliation for Powell's refusal to lower interest rates.
A wave of bipartisan backlash has erupted, with lawmakers expressing concern that this move threatens the essential independence of the Federal Reserve, a cornerstone of U.S. economic stability.
Prominent former Fed chairs and Treasury secretaries have rallied behind Powell, stressing the importance of protecting the institution from politicization and external pressure.
As markets react to the turmoil, fears grow that the investigation could undermine investor confidence, with the U.S. dollar slipping and stock futures wavering.
Powell has firmly denied any wrongdoing, framing the threats of legal action as an intimidation tactic that seeks to coerce the central bank into aligning with political interests over public service.

Top Keywords

Jerome Powell / Donald Trump / Jeanine Pirro / Mike Johnson / Byron York / Janet Yellen / Lisa Murkowski / Thom Tillis / Washington, United States / U.S. Department of Justice / Federal Reserve /