US Justice Department Subpoenas Federal Reserve, Opens Criminal Probe Into Powell
The United States Justice Department has subpoenaed the Federal Reserve and opened a criminal investigation involving its chair, Jerome Powell, in a rare move that has raised concerns over the independence of the central bank.
Powell confirmed that the subpoena was issued by the Justice Department when it was led by officials appointed by President Donald Trump. He declined to provide details on the scope of the request or the specific reasons behind the subpoena.
The Federal Reserve, which sets US monetary policy and oversees interest rates and inflation, operates independently of political authorities. Legal actions targeting the institution are highly unusual and have sparked fears of political pressure on the central bank.
Emphasising the Fed’s autonomy, Powell said the institution continues to carry out its mandate without political interference.
The Justice Department has so far declined to comment, and it remains unclear whether the investigation is ongoing or relates to past matters.
President Trump on Sunday denied having any knowledge of the investigation, distancing himself from the subpoena issued on Friday. However, he criticised Powell’s performance during a brief interview with NBC News.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said, adding that the subpoenas had nothing to do with interest rate decisions.
The development has triggered swift backlash on Capitol Hill. Republican Senator Thom Tillis of North Carolina, a member of the Senate Banking Committee, warned that he would block confirmation of any Federal Reserve nominees until the issue is resolved.
“I will oppose the confirmation of any nominee for the Fed, including the upcoming Fed Chair vacancy, until this legal matter is fully resolved,” Tillis said, describing the probe as a threat to the central bank’s independence.
The investigation has intensified debate in Washington over political influence on monetary policy as speculation continues over the future leadership of the Federal Reserve.
