Summary
The U.S. Department of Justice is investigating Federal Reserve Chair Jerome Powell, which former Fed Chair Janet Yellen and others claim is driven by political motives from President Trump. The investigation focuses on Powell's Senate testimony and the cost of renovations at the Federal Reserve's offices. Critics say this is an attempt to threaten the Fed's independence from presidential influence.
Key Facts
- Janet Yellen, a former Federal Reserve chair, criticized the DOJ investigation into current Fed Chair Jerome Powell as politically motivated.
- The DOJ issued subpoenas and threatened Powell with a criminal indictment concerning his Senate testimony and renovation costs of Fed buildings.
- The Federal Reserve set interest rates independently, which Powell says should serve the public interest, not presidential preferences.
- President Trump has denied involvement in the probe but has previously criticized Powell for not cutting interest rates more aggressively.
- Some lawmakers believe the investigation aims to undermine the Federal Reserve's independence.
- Renovation costs for the Fed's D.C. offices increased from $1.9 billion in 2019 to $2.5 billion in the 2025 budget.
- Critics argue that the DOJ's actions may intimidate the Fed and disrupt the economy.
- Powell insists the investigation is not actually focused on the Senate testimony or building renovations.
