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Federal Reserve Chairman Jerome Powell said the Justice Department had served the central bank with major subpoenas and threatened to file a lawsuit, a rare escalation that poses a threat to financial independence and risks to the economy as a whole.
In the video clip spread On Sunday, Powell said prosecutors are investigating his testimony before the Senate in June regarding the $2.5 billion restructuring of the Federal Reserve headquarters in Washington.
Powell explained the move as he did to keep interest rates higher than President Donald Trump wants, saying: “The threat of criminal charges is the result of the Fed setting interest rates based on what we can do to help the public, rather than what the president wants.”
Trump criticizes Powell and downplays the investigation
He added that the Justice Department had served the Fed “with subpoenas, threatening to indict me in connection with my testimony before the Senate Banking Committee last June.”
Trump said, Speaking to NBC News He said he didn’t know about the investigation, and criticized the Powell administration, saying: “I don’t know anything about it, but he’s certainly not good at running the Fed, and he’s not good at building.”
Asked if the subpoenas were intended to compel Powell on interest rates, Trump said: “No, it never occurred to me to do it that way.” He added that the subpoenas had nothing to do with interest.
Warren accuses Trump of using the Justice Department to pressure the Federal Reserve
The investigation follows months of political debate on the reform plan, including the July 2025 submission from Rep. Ana Paulina Luna urged the Department of Justice to investigate Powell for perjury and perjury related to the testimony.
At the Capitol, Republican Sen. Thom Tillis said he would block the confirmation of future Fed appointees until the matter is resolved, warning that the controversy now raises questions about the Justice Department’s independence.
Democratic Senator Elizabeth Warren said Trump “is abusing the power of the Justice Department as a dictator to get the Fed to serve his own interests, and those of his billionaire friends.”
Markets saw the headlines as a new institutional threat, as traders scrutinized the dollar, interest rate expectations, and signs of volatility that often directly affect the cryptocurrency space through financial and regulatory measures.
Powell’s term as Fed chair expires in May 2026, and he could remain on the board until 2028, making Trump’s choice for the next Fed chair a boon for interest rates, the dollar, and even higher demand for Bitcoin.
A note Powell says the Fed received subpoenas from the Justice Department, and Trump denies any connection between this and interest rates. appeared for the first time Cryptonews Arabic.
