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Federal Reserve (Fed) Chair Jerome Powell stated in an announcement that the US Justice Division has threatened legal prices in opposition to him in connection together with his Senate Testimony final June, throughout which he mentioned the estimated $2.5 billion renovation.
“On Friday, the Division of Justice served the Federal Reserve with grand jury subpoenas, threatening a legal indictment associated to my testimony earlier than the Senate Banking Committee final June,” Powell stated.
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
Based on Powell, the transfer is unprecedented and a direct problem to the Fed’s independence.
The probe’s launch by the US legal professional’s workplace in Washington, authorized in November by Jeanine Pirro, a President Trump ally appointed final yr to run the workplace, features a evaluate of Powell’s public testimony and an examination of spending information linked to the mission.
Trump Opens New Authorized Entrance In opposition to Fed Chair Powell Amid Fee Reduce Disputes
The current investigation now opens a significant new authorized entrance in opposition to Powell, whom Trump has repeatedly attacked for resisting calls for to sharply reduce rates of interest.
President Trump has repeatedly and publicly threatened to fireside the Fed chair, regardless of nominating him in 2017, and has raised the prospect of authorized motion over the renovation, which he described as “incompetence.”
Although Powell stands and respects accountability, he has repeatedly warned that the motion have to be seen in its broader political context of the administration’s threats and ongoing stress.
“This new risk isn’t about my testimony final June or in regards to the renovation of the Federal Reserve buildings. It isn’t about Congress’s oversight function,” he stated.
As an alternative, Powell straight linked the risk to financial coverage selections. “These are pretexts. The specter of legal prices is a consequence of the Federal Reserve setting rates of interest based mostly on our greatest evaluation of what is going to serve the general public, slightly than following the preferences of the President,” he stated.
Powell has now stated that he would proceed in his function with out yielding to stress.
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