Trump tightens pressure on Powell? Investigation raises independence fears

In a move without precedent in modern US history, the Justice Department has opened a criminal investigation into Federal Reserve Chair Jerome Powell over statements he made to Congress about the renovation of the central bank’s headquarters in Washington.

The inquiry represents a dramatic escalation of President Donald Trump’s long-running campaign against Powell, transforming public attacks and threats into formal legal action.

In a statement released late Sunday, Powell said he respected the rule of law and accountability in a democratic system, but argued that the investigation could not be viewed in isolation.

“No one—certainly not the chair of the Federal Reserve—is above the law. But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”

Powell, who has typically avoided public confrontation with Trump despite years of criticism, framed the investigation as politically motivated retaliation for the Fed’s refusal to cut interest rates as aggressively as the president has demanded.