Powell says Federal Reserve subpoenaed by Trump Administration’s Justice Department

AFP

12 Jan, 2026 03:13 AM2 mins to read

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Federal Reserve Chairman Jerome Powell says Justice Department subpoenas are a pretext to punish Fed independence. Photo / Getty Images

Federal Reserve Chairman Jerome Powell revealed today that the central bank had been subpoenaed by the Justice Department, blasting the move as part of President Donald Trump’s extraordinary pressure campaign on United States monetary policy decisions.

Powell said in a statement that the bank received grand jury subpoenas on
Friday local time related to his Senate testimony in June, which had been about a major renovation project of Federal Reserve office buildings.

He dismissed the possible threat of a criminal indictment over his testimony or the renovation project as “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,” Powell said in a statement.

“This unprecedented action should be seen in the broader context of the Administration’s threats and ongoing pressure,” Powell said.