Fed Subpoena Shock: Powell Confirms DOJ Investigation as Trump Denies Rate Influence
Washington's corridors of power just got a whole lot more interesting—and crypto markets are watching every move.
The Subpoena Bomb
Federal Reserve Chair Jerome Powell dropped a regulatory bombshell: the central bank is officially responding to Department of Justice subpoenas. No details disclosed, but the mere confirmation sends institutional tremors through traditional finance.
The Political Pushback
Former President Trump immediately rejected any connection between his administration and Fed interest rate decisions. The timing? Suspiciously convenient—like a bank offering you a loan right after your credit check.
Institutional Crossroads
When the DOJ knocks on the Fed's door while political figures scramble for distance, it reveals the fragile theater of centralized monetary policy. Meanwhile, Bitcoin's protocol keeps validating blocks, completely unconcerned with subpoenas or political posturing.
Traditional finance's 'trust us' model just got subpoenaed—while decentralized networks operate with mathematical certainty. Maybe the real interest rate story isn't about percentages, but about who actually controls the ledger.
Trump Criticizes Powell While Downplaying Investigation
He said the DOJ served the Fed “with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June.”
Trump, speaking to NBC News, said he had no knowledge of the investigation and swiped at Powell’s leadership. “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,” he said.
Asked if the subpoenas were meant to pressure Powell on rates, Trump said, “No. I wouldn’t even think of doing it that way.” He also said the subpoenas had nothing to do with interest rates.
*TRUMP SAYS DOJ SUBPOENAS NOTHING TO DO WITH INTEREST RATES: NBC
*TRUMP DENIES INVOLVEMENT IN DOJ'S FED SUBPOENAS: NBC
Warren Accuses Trump Of Using DOJ To Pressure Fed
The investigation follows months of political sparring over the renovation, including a July 2025 referral from Rep. Anna Paulina Luna urging the DOJ to investigate Powell for potential perjury and false statements tied to that testimony.
On Capitol Hill, Republican Sen. Thom Tillis said he WOULD block confirmations of future Fed nominees until the matter is resolved, warning the fight now raises questions about DOJ independence as well.
Democratic Sen. Elizabeth Warren said Trump is “abusing the authorities of the Department of Justice like a wannabe dictator so the Fed serves his interests, along with his billionaire friends.”
Markets treated the headlines as a fresh institutional risk, with traders watching the dollar, rate expectations and volatility gauges that often feed straight into crypto positioning through liquidity and leverage.
Powell’s chair term ends in May 2026, and he can stay on the Fed board until 2028, leaving Trump’s next chair pick as a looming catalyst for rates, the dollar and Bitcoin’s macro bid.
