“Political Intimidation”: Fed Chair Powell Slams DOJ Subpoena Over Building Renovations
By Lions Roar News Washington Bureau
WASHINGTON D.C. (January 12, 2026) — In a stunning breakdown of traditional norms, Federal Reserve Chair Jerome Powell has accused the Department of Justice (DOJ) of using the threat of criminal indictment to undermine the independence of the U.S. central bank.
The escalations follow a long-standing feud between the Fed and President Donald Trump, who has frequently criticized the agency’s interest rate policies.
⚖️ The DOJ Subpoena & Indictment Threat
In a bold video statement released on Sunday, Powell revealed that the DOJ has served the Federal Reserve with subpoenas. The investigation centers on Powell’s June testimony before the Senate Banking Committee regarding a US$2.5 billion renovation project of two historic Fed office buildings.
- The Allegations: While the DOJ is focusing on the ballooning costs of the renovations, Powell has characterized the investigation as a “pretext.”
- The “Pretext”: Powell suggests the criminal threat is actually a tool for political pressure, aimed at forcing the Fed to align interest rate cuts with the President’s preferences.
- Powell’s Defense: During his June testimony, Powell defended the costs, disputing claims that the project was “excessive” or mismanaged.
🥊 A Break in Protocol
For years, Jerome Powell has maintained a restrained and understated response to President Trump’s personal insults and policy demands. That era appears to be over.
“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.” — Jerome Powell, Federal Reserve Chair
This “gloves-off” approach marks a significant shift. Previously, the Fed had attempted to appease the administration by scaling back certain initiatives, such as climate-change risk assessments for the banking system.
📍 Why This Matters
The independence of the Federal Reserve is a cornerstone of the U.S. economy, designed to ensure that monetary policy is based on long-term data rather than short-term political gains. A criminal indictment against the central bank or its leader would be an unprecedented event in American history, potentially causing massive volatility in global financial markets.
