Fed Chair Powell Announces DOJ Subpoenas on Testimony

Federal Reserve Chair Jerome Powell announced Sunday that the Justice Department has served the central bank with grand jury subpoenas, threatening a criminal indictment tied to his congressional testimony last June on renovations to the Fed's headquarters in Washington, D.C. Powell described the action as a pretext linked to the Fed's independent decisions on interest rates, amid ongoing tensions with the Trump administration.

In a video statement released Sunday evening, Powell emphasized that the probe stems from the central bank's refusal to align its monetary policy with presidential preferences. "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," he said. He further stated, "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."

The subpoenas, issued late last week by the U.S. Attorney's Office for the District of Columbia, focus on Powell's appearance before the...