BREAKING: Federal prosecutors have launched a criminal investigation into Jerome Powell, the chair of the Federal Reserve, raising significant concerns about the independence of the nation’s central bank. The investigation, initiated by the US Attorney’s Office for the District of Columbia under Jeanine Pirro, focuses on allegations that Powell misled Congress regarding the $2.5 billion renovation of the Fed’s headquarters in Washington, D.C.
According to sources briefed on the matter, the inquiry examines Powell’s congressional testimony, internal records, and spending associated with a project that has exceeded its budget by hundreds of millions. This escalation comes amid President Donald Trump‘s ongoing criticism of Powell, who has resisted calls for aggressive interest rate cuts.
Powell has publicly denounced the investigation as “unprecedented,” challenging its legitimacy in a defiant video message. He stated, “This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings.” Powell emphasized that the central bank has made efforts to keep Congress informed, asserting that the investigation undermines the Fed’s autonomy.
“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 warned, highlighting the potential implications for monetary policy.
Powell’s situation represents the most serious legal challenge he has faced since taking office, placing the Federal Reserve’s independence at risk. The inquiry could exacerbate tensions between the Fed and the White House, particularly as Trump has previously suggested he might seek to remove Powell.
This investigation not only threatens Powell’s position but also has profound implications for the financial markets and economic policy in the United States. As this story develops, the focus will be on how Powell navigates these allegations and whether they will impact the Fed’s upcoming decisions on interest rates.
Stay tuned for further updates as this urgent situation unfolds.
