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riversedge

(79,532 posts)
Mon Jan 12, 2026, 05:27 AM 14 hrs ago

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 bank’s 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.”

......................

“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 Powell’s 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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Fed Chair Powell says he's under criminal investigation, won't bow to Trump intimidation (Original Post) riversedge 14 hrs ago OP
Perversly... Mike Nelson 13 hrs ago #1
This Powell statement is incredibly direct LetMyPeopleVote 7 hrs ago #2
Team Trump has embraced the idea that the levers of prosecutorial power are just another tool to be used against those w LetMyPeopleVote 6 hrs ago #3

Mike Nelson

(10,924 posts)
1. Perversly...
Mon Jan 12, 2026, 05:52 AM
13 hrs ago

... 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

(175,184 posts)
3. Team Trump has embraced the idea that the levers of prosecutorial power are just another tool to be used against those w
Mon Jan 12, 2026, 01:15 PM
6 hrs ago

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 president’s way.

As Trump’s DOJ pursues Powell, it's worth appreciating the brazenness: Trump abusing the justice system. He knows he’s abusing the system. He knows that we know he’s abusing the system — but he’s doing it anyway.

The corruption is the point. www.ms.now/rachel-maddo...

Steve Benen (@stevebenen.com) 2026-01-12T13:05:08.422Z

https://www.ms.now/rachel-maddow-show/maddowblog/prosecutors-open-investigation-into-fed-chair-powell-sparking-immediate-backlash

Two weeks ago, however, Trump’s position took a curious turn: He announced on Dec. 30 that his administration would “probably bring a lawsuit against” Powell.

That didn’t 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 didn’t 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. attorney’s office in the District of Columbia has opened a criminal investigation into Jerome H. Powell, the Federal Reserve chair, over the central bank’s 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. Powell’s 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 Trump’s 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:
www.youtube.com/watch?v=KckG...
www.federalreserve.gov/newsevents/s...

Federal Reserve (@federalreserve.gov) 2026-01-12T00:35:27.499Z


.......A political backlash is brewing too. Democratic leaders wasted little time in condemning the developments, but the pushback wasn’t 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, it’s worth appreciating the profound damage Trump and his team are doing to the rule of law as the dust settles on the news......

Trump doesn’t appear to be the least bit concerned about appearances or a pretense of propriety. He’s abusing the system. He knows he’s abusing the system. He knows that we know he’s abusing the system — but he’s doing it anyway.

It’s easy to believe that Trump and his confederates aren’t 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 they’ll 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 it’s getting worse. We now live in a country where the president’s opponents are pursued by prosecutors in brazen displays of partisan power.
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