Fed Chair Jerome Powell Rings Every Alarm Bell About DOJ Investigation
Federal Reserve Chair Jerome Powell shot back at President Trump Sunday after the Department of Justice served the Fed’s board with grand jury subpoenas.
In a statement, Powell called the move a “threat of criminal charges,” saying it was 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.”
“I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law. But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell noted.
Trump has railed against Powell and his stewardship of the Fed for months, attacking the chairman whom he appointed during his first term on everything from his criticism of tariffs to his refusal to cut interest rates as quickly or as much as Trump wants. This grand jury summons is ostensibly over the high cost of renovations to the Fed’s office buildings, which Trump has exaggerated as pretext to attack Powell.
Powell warned that the DOJ’s action is a pretext to coerce the Fed to do Trump’s bidding.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.
Powell: 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
— Acyn (@Acyn) January 12, 2026
This is about whether the fed will be able to continue to set… pic.twitter.com/InKimVUp21
By law, the Fed is supposed to be politically independent. That hasn’t stopped Trump from trying to fire one of the board’s governors, Lisa Cook, or from issuing this unheard-of subpoena. In reality, Trump is mad that his own policies are tanking the economy, but refuses to recognize that. Unfortunately for him, having yes-men at the Fed will not bring forth the economic renaissance Trump seems to think he’s capable of.