Summary
The Justice Department is conducting a criminal investigation into Federal Reserve Chair Jerome Powell, focusing on a costly headquarters renovation. President Trump has criticized Powell, arguing the probe is aimed at pressuring the Fed to lower interest rates. This situation has caused political tension and market instability.
Key Facts
- The Justice Department is investigating Federal Reserve Chair Jerome Powell over a headquarters renovation that went $700 million over budget.
- President Trump argues the investigation is meant to pressure the Fed into lowering interest rates.
- President Trump has publicly criticized Powell and suggested he will be replaced soon.
- Powell's term as Fed Chair ends in May, but he can remain on the Board until 2028.
- U.S. Attorney Jeanine Pirro issued subpoenas to the Fed, causing political backlash and market volatility.
- Powell has accused President Trump of using criminal prosecution as a tool to intimidate the Fed.
- Some politicians, including Republican Senator Thom Tillis, have pledged to oppose Fed nominees until the investigation concludes.
