Mon, 12 Jan 2026

Mon, 12 Jan 2026 US justice department opens criminal probe into Fed chair Jerome Powell

He called the probe "unprecedented", following his refusal to lower interest rates after demands by Donald Trump.
US Federal Reserve Chairman Jerome Powell has announced that he is under investigation by federal prosecutors over his testimony to a Senate committee regarding renovations to Fed buildings. Powell claims that the probe was opened due to his refusal to lower interest rates despite repeated public pressure from President Donald Trump, who nominated him for the role in 2017. The investigation is being overseen by the US Attorney's Office for the District of Columbia and marks the latest escalation in Trump's ongoing dispute with Powell. Trump has repeatedly criticized Powell over his interest rate decisions and has threatened to remove him as Fed chair. North Carolina Senator Thom Tillis, a Republican, has vowed to oppose any nominee to replace Powell until the investigation is resolved, while Democratic Senator Elizabeth Warren accused Trump of trying to "push Powell off the Fed board for good" and install another nominee in his place. The probe has raised concerns about the independence of the Federal Reserve and the potential for political pressure to influence monetary policy decisions.
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