rewrite this content using a minimum of 1000 words and keep HTML tags
Join Our Telegram channel to stay up to date on breaking news coverage
Federal Reserve (Fed) Chair Jerome Powell said in a statement that the US Justice Department has threatened criminal charges against him in connection with his Senate Testimony last June, during which he discussed the estimated $2.5 billion renovation.
“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June,” Powell said.
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
According to Powell, the move is unprecedented and a direct challenge to the Fed’s independence.
The probe’s launch by the US attorney’s office in Washington, approved in November by Jeanine Pirro, a President Trump ally appointed last year to run the office, includes a review of Powell’s public testimony and an examination of spending records linked to the project.
Trump Opens New Legal Front Against Fed Chair Powell Amid Rate Cut Disputes
The recent investigation now opens a major new legal front against Powell, whom Trump has repeatedly attacked for resisting demands to sharply cut interest rates.
President Trump has repeatedly and publicly threatened to fire the Fed chair, despite nominating him in 2017, and has raised the prospect of legal action over the renovation, which he described as “incompetence.”
Even though Powell stands and respects accountability, he has repeatedly warned that the action must be viewed in its broader political context of the administration’s threats and ongoing pressure.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role,” he said.
Instead, Powell directly linked the threat to monetary policy decisions. “Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” he said.
Powell has now said that he would continue in his role without yielding to pressure.
Related News:
Best Wallet – Diversify Your Crypto Portfolio
Easy to Use, Feature-Driven Crypto Wallet
Get Early Access to Upcoming Token ICOs
Multi-Chain, Multi-Wallet, Non-Custodial
Now On App Store, Google Play
Stake To Earn Native Token $BEST
250,000+ Monthly Active Users
Join Our Telegram channel to stay up to date on breaking news coverage
and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website [http://defi-daily.com] and label it “DeFi Daily News” for more trending news articles like this
Source link
