Jerome Powell Unfazed as DOJ Threatens Indictment Over Senate Testimony
Federal Reserve Chair Jerome Powell has fired back at the Department of Justice, saying that the administration's threats to indict him over his congressional testimony on the Fed's building renovations are an attempt to intimidate and undermine the central bank's independence.
The DOJ served the Federal Reserve with grand jury subpoenas on Friday, citing potential abuse of taxpayer dollars. However, Powell claims that the real issue is not about the renovation costs, but rather about the Fed's ability to set interest rates based on economic evidence, rather than following the President's preferences.
"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 in a video statement released Sunday evening. "Public service sometimes requires standing firm in the face of threats."
The controversy over the building renovations has become a vehicle for broader tensions about Fed independence and monetary policy. The Fed has previously attempted to placate the administration by dialing back some policies, such as efforts to consider climate change's impact on the banking system.
Powell's stance represents a dramatic departure from the Fed's typically restrained approach to presidential criticism. Republican Senator Thom Tillis of North Carolina has vowed to oppose any future Fed nominees until "this legal matter is fully resolved."
The DOJ stated that Attorney General Pam Bondi has instructed her US Attorneys to prioritize investigating any abuse of taxpayer dollars, but declined to comment on specific cases.
Powell's term expires in May 2026, and the Supreme Court has recently signaled that Trump cannot fire him simply over interest rate disagreements. However, removal "for cause" such as misconduct remains legally possible. The grand jury investigation will proceed under U.S. Attorney Jeanine Pirro's office.
As the standoff between Powell and the DOJ continues, one thing is clear: the future of monetary policy in the United States hangs in the balance.
Federal Reserve Chair Jerome Powell has fired back at the Department of Justice, saying that the administration's threats to indict him over his congressional testimony on the Fed's building renovations are an attempt to intimidate and undermine the central bank's independence.
The DOJ served the Federal Reserve with grand jury subpoenas on Friday, citing potential abuse of taxpayer dollars. However, Powell claims that the real issue is not about the renovation costs, but rather about the Fed's ability to set interest rates based on economic evidence, rather than following the President's preferences.
"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 in a video statement released Sunday evening. "Public service sometimes requires standing firm in the face of threats."
The controversy over the building renovations has become a vehicle for broader tensions about Fed independence and monetary policy. The Fed has previously attempted to placate the administration by dialing back some policies, such as efforts to consider climate change's impact on the banking system.
Powell's stance represents a dramatic departure from the Fed's typically restrained approach to presidential criticism. Republican Senator Thom Tillis of North Carolina has vowed to oppose any future Fed nominees until "this legal matter is fully resolved."
The DOJ stated that Attorney General Pam Bondi has instructed her US Attorneys to prioritize investigating any abuse of taxpayer dollars, but declined to comment on specific cases.
Powell's term expires in May 2026, and the Supreme Court has recently signaled that Trump cannot fire him simply over interest rate disagreements. However, removal "for cause" such as misconduct remains legally possible. The grand jury investigation will proceed under U.S. Attorney Jeanine Pirro's office.
As the standoff between Powell and the DOJ continues, one thing is clear: the future of monetary policy in the United States hangs in the balance.
I'm so done with this whole thing! Can't believe the DOJ is trying to bully Jerome Powell like that 
. It's not about the renovation costs, it's about who's in charge - the Fed or the President 
. If the Fed can't make decisions based on facts and evidence, then what's the point of even having a central bank? 
. The Fed needs to maintain its independence so we don't end up with hyperinflation or something 
. It's not about being stubborn, it's about doing what's right for the country 
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I hope so, but at the same time, we need to keep an eye on this situation 
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like he's trying out for a superhero cape or something. Thinks he can just defy the DOJ and still be able to set interest rates without anyone breathing down his neck? 
Newsflash, Jerry: you're not above the law, no matter how much power you think you have.
You mean like when Obama had to deal with Congress and they got all butt-hurt because he didn't agree with them? 
This whole thing sounds super stressful for Jerome Powell! I can imagine how frustrating it must be to feel like your independence is being threatened just because you're trying to do your job. 
It's like, isn't your role as Fed Chair supposed to be about making tough decisions based on economic evidence, not following some politician's wishes? 
I hope everything works out and he can continue to do his thing without any more drama! 
. Powell's right to stand firm though, gotta be some independence from the President's whims. And what's with the Republican senator threatening to block future Fed nominees over this? It's like they're playing hardball trying to get their point across 
... or is it just a bunch of posturing to scare people into submission? Either way, I'm not holding my breath for any actual resolution 
. The Fed's been around for ages, and we're supposed to trust them to make decisions based on economic evidence? 
.
. I mean, sure, the Fed's got to be accountable, but this seems like a total power play 
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. "I'm not gonna back down from your threats!" 
It's starting to feel like a big power struggle between the branches of government. Can't we just focus on finding common ground here? 
. The fact that some senator dude is already threatening future nominees because of this is super unfair 
The gov't's all like "hey, we need more money" and then they just magically make it happen by changing interest rates. It sounds kinda shady to me, you know? 