Federal Reserve Chairman Jerome Powell says he is now the subject of a criminal investigation launched by the Department of Justice—and he claims the real motivation is political retaliation from President Donald Trump’s administration.
In a statement released Saturday alongside a video message, Powell confirmed that the Federal Reserve was served with grand jury subpoenas tied to his June testimony before the Senate Banking Committee, where he addressed, among other topics, a multi-year project to renovate historic Fed buildings.
“I have deep respect for the rule of law and for accountability in our democracy,” Powell said. “No one—certainly not the chair of the Federal Reserve—is above the law.” But he made clear that he believes this investigation isn’t truly about oversight or renovations.
“These are pretexts,” Powell stated. “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.”
Powell suggested the DOJ probe is just the latest in a string of threats and pressure from the Trump White House, which has been furious with the Fed’s refusal to slash interest rates more aggressively.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” Powell said. “It 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.”
He noted that he has served under four administrations from both parties and has always tried to execute his duties “without political fear or favor.”
Powell also made clear that he does not intend to back down: “Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
President Trump has frequently blasted Powell, even threatening to fire or sue him for “gross incompetence,” including during several late-December Truth Social posts. With this latest escalation, the battle between the White House and the central bank appears to be reaching a new—and possibly historic—confrontation.
The post Jerome Powell Accuses Trump Admin of Using DOJ to Punish Him Over Interest Rates appeared first on Real News Now.
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