Federal Reserve hit with DOJ subpoenas in criminal probe over Chair Jerome Powell testimony
NBC News••nation
Key Points:
- Federal Reserve Chair Jerome Powell revealed that the Justice Department subpoenaed the Fed with the threat of a criminal indictment related to his Senate testimony on the Fed's office renovation, marking a new level of pressure from the Trump administration.
- Powell stated the indictment threat is a pretext aimed at influencing the Fed's independent interest rate decisions, which have been criticized by President Trump, who demands lower rates amid an affordability crisis.
- Despite the pressure and calls from Trump for his removal, Powell affirmed he will continue his role with integrity, emphasizing the importance of the Fed's independence from political interference.
- The Justice Department's probe into the renovation project and mortgage fraud allegations against Fed Governor Lisa Cook are seen as part of the administration's broader campaign to control the Fed
