Key Facts
- ✓ Federal Reserve Chair Jerome Powell said the US central bank was served grand jury subpoenas on Friday from the Department of Justice that threatened criminal indictment.
- ✓ In a statement on Sunday night, Powell said the subpoenas focused on his June testimony about renovations at historic Fed office buildings.
- ✓ The Fed chair said the subpoenas were the latest move in the Trump administration's pressure campaign on the central bank to lower interest rates.
- ✓ Powell suggested that this latest threat won't lead to his departure from his position, which President Donald Trump has repeatedly called for.
Quick Summary
Federal Reserve Chair Jerome Powell confirmed that the US central bank received grand jury subpoenas from the Department of Justice on Friday. The subpoenas threaten criminal indictment and are reportedly linked to testimony regarding office renovations.
Powell views this legal move as part of a broader pressure campaign by the Trump administration to lower interest rates. He remains defiant, stating he will continue his duties despite calls for his resignation.
Subpoenas and Office Renovations
The Department of Justice has issued grand jury subpoenas to the Federal Reserve. In a statement released on Sunday night, Federal Reserve Chair Jerome Powell detailed the nature of these legal documents.
According to Powell, the subpoenas specifically concern his testimony from June. The focus of the inquiry is the renovations currently taking place at historic Fed office buildings. The issuance of these subpoenas represents a significant escalation in legal scrutiny regarding central bank operations.
"No one — certainly not the chair of the Federal Reserve — is above the law."
— Jerome Powell, Federal Reserve Chair
Allegations of Political Pressure
Chairman Powell has characterized the DOJ's actions as a component of a sustained pressure campaign. He explicitly linked the subpoenas to the Trump administration's desire to see interest rates lowered.
Powell argued that this situation transcends the specific issue of building renovations. He framed the conflict as a battle for the independence of the Federal Reserve's monetary policy. The core question, according to Powell, is whether the Fed will be allowed to continue setting interest rates based on economic conditions and evidence, or if policy will be directed by political intimidation.
Powell's Response and Job Security
Despite the threat of criminal indictment, Jerome Powell maintained a stance of compliance with the law while defending his position. He stated, "No one — certainly not the chair of the Federal Reserve — is above the law."
However, he immediately contextualized the subpoenas as an "unprecedented action" driven by threats. Powell also addressed his future at the central bank. President Donald Trump has repeatedly called for Powell's departure, but the Fed Chair indicated that this latest development would not prompt a resignation. He affirmed his commitment to continuing his job.
Conclusion
The receipt of grand jury subpoenas marks a volatile moment in the relationship between the Federal Reserve and the executive branch. While the legal inquiry centers on office renovations, the broader implications concern the autonomy of US monetary policy.
As the situation develops, Jerome Powell remains steadfast in his role, asserting that the central bank's decisions must remain insulated from political pressure. The conflict highlights the ongoing tension between the administration's economic agenda and the Fed's mandate to operate independently.
"But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure."
— Jerome Powell, Federal Reserve Chair
"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."
— Jerome Powell, Federal Reserve Chair
