Fed Chair Powell says he's under criminal investigation, won't bow to Trump intimidation
Source: cnbc.com
Published Sun, Jan 11 20267:32 PM ESTUpdated 14 Min Ago
Dan Mangan
Key Points
Federal Reserve Chairman Jerome Powell is under federal criminal investigation related to the $2.5 billion renovation to the central banks headquarters and his congressional testimony about that, Powell said.
Powell said the probe was the result of the Fed setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of President Donald Trump.
Sen. Thom Tillis, a North Carolina Republican, and Banking Committee member, said he would oppose any nominee by Trump to replace Powell, and any Fed board nominee, until this legal matter is fully resolved.
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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.
Stock futures fell on the heels of Powells statement.......................
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Read more: https://www.cnbc.com/2026/01/12/fed-jerome-powell-criminal-probe-nyt.html
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Mike Nelson
(10,924 posts)... Powell's conservative-moderate approach has likely helped Crooked Donald's economic management. The next Fed Chair will likely focus on the needs of the Maralago crowd, not the country. It will get ugly.
LetMyPeopleVote
(175,183 posts)LetMyPeopleVote
(175,183 posts)Team Trump has embraced the idea that the levers of prosecutorial power are just another tool to be used against those who get in the presidents way.
As Trumpâs DOJ pursues Powell, it's worth appreciating the brazenness: Trump abusing the justice system. He knows heâs abusing the system. He knows that we know heâs abusing the system â but heâs doing it anyway.
— Steve Benen (@stevebenen.com) 2026-01-12T13:05:08.422Z
The corruption is the point. www.ms.now/rachel-maddo...
https://www.ms.now/rachel-maddow-show/maddowblog/prosecutors-open-investigation-into-fed-chair-powell-sparking-immediate-backlash
That didnt make a lot of sense there were no grounds for such a case but two weeks later, those comments became relevant anew. As it happens, the president didnt bother pursuing some baseless civil suit against the Fed chair; instead, his team settled on a different legal tactic. The New York Times reported:
The U.S. attorneys office in the District of Columbia has opened a criminal investigation into Jerome H. Powell, the Federal Reserve chair, over the central banks renovation of its Washington headquarters and whether Mr. Powell lied to Congress about the scope of the project, according to officials briefed on the situation.
The inquiry, which includes an analysis of Mr. Powells public statements and an examination of spending records, was approved in November by Jeanine Pirro, a longtime ally of President Trump who was appointed to run the office last year, the officials said.
Around the time the news started to reach the public, Powell issued a roughly two-minute video statement, speaking directly to the camera, confirming that Trumps Justice Department on Friday had served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment.
Video message from Federal Reserve Chair Jerome H. Powell:
— Federal Reserve (@federalreserve.gov) 2026-01-12T00:35:27.499Z
www.youtube.com/watch?v=KckG...
www.federalreserve.gov/newsevents/s...
.......A political backlash is brewing too. Democratic leaders wasted little time in condemning the developments, but the pushback wasnt entirely partisan. Republican Sen. Thom Tillis of North Carolina, a member of the Senate Banking Committee, said in a statement, If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that are in question.
Just as notably, the senator said he would oppose the confirmation of any nominee for the Fed including the upcoming Fed Chair vacancy until this legal matter is fully resolved.
But as important as these elements are, its worth appreciating the profound damage Trump and his team are doing to the rule of law as the dust settles on the news......
Trump doesnt appear to be the least bit concerned about appearances or a pretense of propriety. Hes abusing the system. He knows hes abusing the system. He knows that we know hes abusing the system but hes doing it anyway.
Its easy to believe that Trump and his confederates arent hiding their weaponization of the criminal justice system because they want everyone to notice. They need federal officials and White House critics to be afraid, and other federal prosecutors to understand that theyll soon be unemployed unless they play ball with the Republican agenda.
The corruption is the point.
There might be half-hearted denials, issued with winks and nods, but by design, everyone should be painfully aware of what is plainly true: The authoritarian crisis has arrived, and its getting worse. We now live in a country where the presidents opponents are pursued by prosecutors in brazen displays of partisan power.
