Trump administration threatens Fed chair with criminal charges

Powell said the Department of Justice last week served the Federal Reserve with grand jury subpoenas related to his testimony before the Senate Banking Committee in June. He described the move as “unprecedented” and warned it was being used as a pretext to undermine the independence of the central bank.

Donald Trump has repeatedly cited the cost overruns of the renovation project as evidence of alleged wrongdoing, suggesting it could justify Powell’s dismissal. Over the past year, the president has publicly attacked the Fed chair, calling him a “numbskull” and “Mr Too Late”, while also attempting to remove Fed Governor Lisa Cook over allegations she has denied.

In a statement issued Sunday night, Powell said the threats amounted to political pressure aimed at influencing monetary policy. “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,” he said. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions.”

Powell stressed that the Fed had made “every effort” to keep Congress informed about the renovation and said both the project and his testimony were being used as “pretexts”.

The Federal Reserve resumed cutting interest rates in September 2025, lowering its benchmark rate from 4.5% to 3.75%, though Trump has argued it should be closer to 1%.

Powell’s term expires in May. Trump is expected to announce a replacement soon, with Kevin Hassett among the leading contenders.

Earlier, Qazinform News Agency reported that U.S. President Donald Trump published an image on his social media platform Truth Social in which he refers to himself as the “acting president of Venezuela.”