Fed Chair Powell Accuses Trump Administration of Political Pressure Over Interest Rates

Federal Reserve Chair Jerome Powell issued a rare televised statement accusing the TRUMP administration of using criminal investigations to pressure the central bank into cutting interest rates. The Justice Department served grand jury subpoenas on Friday, targeting Powell's 2025 testimony regarding a $2.5 billion headquarters renovation.

"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," Powell said. He framed the probe as an attack on Fed independence, warning monetary policy risks being "directed by political pressure or intimidation."

The investigation, approved by Trump ally U.S. Attorney Jeanine Pirro, focuses on whether Powell misled Congress about the renovation's scope and cost. Prosecutors have repeatedly contacted Powell's staff for documents, according to The New York Times.