Jerome Powell DOJ Criminal Investigation 2026: A Historic Clash Over Fed Independence
The DOJ has opened a criminal investigation into Fed Chair Jerome Powell. This unprecedented move comes amid clashes with President Trump over interest rates and renovation costs.
An unprecedented legal storm is engulfing the heart of the U.S. financial system. The Department of Justice (DOJ) has opened a criminal investigation into Federal Reserve Chairman Jerome Powell, marking a startling escalation in the conflict between the central bank and the Trump administration.
Jerome Powell DOJ Criminal Investigation 2026: The Core Allegations
According to reports from the BBC and the New York Times, federal prosecutors served Powell with subpoenas on Sunday. The probe centers on his Senate testimony regarding the overhaul of the Eccles Building and the 1951 Constitution Avenue facility. While the Fed frames the $2.5 billion project as a necessary modernization, President Trump has attacked it as a $3.1 billion case of mismanagement.
Political Intimidation or Accountability?
In a video statement, Powell didn't hold back, suggesting the probe stems from his refusal to lower interest rates under pressure. "This is about whether the Fed will be able to continue to set interest rates based on evidence... or whether monetary policy will be directed by political pressure," Powell stated. Meanwhile, President Trump told NBC News he had no knowledge of the investigation but didn't miss the chance to criticize Powell's building oversight.
Senators are taking sides as the drama unfolds. Republican Thom Tillis vowed to block any Fed nominees until the legal matter is resolved, citing concerns over Fed independence. Democrat Elizabeth Warren called the probe a "corrupt takeover" attempt of the central bank. Markets reacted swiftly, with silver prices jumping 5.4% in a single day.
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