Trump Admin Threatens Jerome Powell, Federal Reserve Chair, With Criminal Charges: Here’s What To Know – Blavity
Yet another government official faces potential criminal charges after clashing with President Donald Trump. This time, the head of the Federal Reserve Board is under federal investigation over testimony he gave to Congress. He and many observers see another example of Trump using the justice system to go after his opponents.
Powell calls investigation ‘pretext’ to pressure Federal Reserve over policy
The New York Times reported Sunday that the U.S. Attorney’s Office in the District of Columbia has launched an investigation into Federal Reserve Board Chair Jerome Powell, who heads the United States’ central bank, which determines interest rates and otherwise manages the U.S. economy. The investigation is examining whether Powell lied to Congress when he testified in June about expensive renovations being done on the Fed’s headquarters; Powell denied reports of lavish amenities being included in the construction project, and the Fed has published information to support Powell’s description of the project. The investigation into Powell was launched under Jeanine Pirro, a former judge and Fox News host whom Trump picked to lead the U.S. Attorney’s Office in D.C.
Powell released a statement Sunday addressing the investigation and possible charges.
“I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law,” Powell declared in the video message. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” he explained. Calling the questions about his testimony and the Fed building renovation “pretexts,” Powell said, “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.”
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH— Federal Reserve (@federalreserve) January 12, 2026
Political backlash for Trump as DOJ continues to go after the president’s opponents
As Powell notes, Trump has fiercely criticized the Fed chair for not lowering interest rates more aggressively, with the president frequently attacking Powell and other members of the Federal Reserve Board. Trump has denied that the investigation into Powell is politically motivated.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump told NBC News during an interview Sunday.
Despite Trump’s denial, the inquiry against Powell is the latest example of the Justice Department investigating or filing criminal charges against political figures who have clashed with Trump, including Federal Reserve Board Governor Lisa Cook, who Trump unsuccessfully attempted to fire last year after the administration accused her of mortgage fraud based on questionable evidence; Cook has not been charged with any crimes, and a federal judge has ruled that she can remain a member of the Fed Board. The accusations against Cook are similar to those made against New York Attorney General Letitia James. Trump publicly called on U.S. Attorney General Pam Bondi to go after James, as well as former FBI Director James Comey and California Sen. Adam Schiff, all Trump critics. A federal judge recently threw out the cases against James and Comey.
This latest example of Trump seemingly using the Justice Department against a political opponent has drawn criticism from both sides of the political aisle. Sen. Elizabeth Warren, D-Mass., said on social media that Trump is “abusing the law like a wannabe dictator so the Fed serves him and his billionaire friends.” Warren declared, “The Senate must not move ANY Trump Fed nominee.”
Trump wants to nominate a new Fed Chair AND push Powell off the Board for good to complete his corrupt takeover of our central bank.He is abusing the law like a wannabe dictator so the Fed serves him and his billionaire friends.The Senate must not move ANY Trump Fed nominee. https://t.co/3Lsoyq6wI6— Elizabeth Warren (@SenWarren) January 12, 2026
Sen. Thom Tillis, R-N.C., shared this sentiment and said the move against Powell demonstrates that the administration is “actively pushing to end the independence of the Federal Reserve,” while also calling into question “the independence and credibility of the Department of Justice.” Tillis vowed to “oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.”
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. I… https://t.co/wDMH6twcD5— Senator Thom Tillis (@SenThomTillis) January 12, 2026
It is unclear what will come of the Justice Department’s investigation of Powell or whether the administration will ultimately push for criminal charges against the Federal Reserve chair, who is set to step down from his position in May. But the launching of the investigation itself appears to many to be just the latest example of a growing campaign of political intimidation and retribution by the Trump administration against the president’s list of political adversaries.
The post Trump Admin Threatens Jerome Powell, Federal Reserve Chair, With Criminal Charges: Here’s What To Know appeared first on Blavity.
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