Jerome Powell Faces Legal Pressure from Trump Administration

Federal Reserve Chair Jerome Powell reveals that the Trump administration threatened him with criminal indictment related to his Congressional testimony on a Fed building renovation. This marks an intensification in the ongoing clash with Donald Trump over interest rates and Powell's leadership since 2018.

U.S. Federal Reserve Chair Jerome Powell disclosed on Sunday that the Trump administration had threatened him with a criminal indictment and issued grand jury subpoenas following his Congressional testimony last summer concerning a Federal Reserve building renovation project. Powell described the legal actions as a "pretext" designed to increase pressure on the central bank to reduce interest rates.

"On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June," Powell stated on Sunday. This development signifies a dramatic escalation in the ongoing dispute with former President Donald Trump, a conflict that dates back to Powell's initial years as chair in 2018.

Powell asserted his deep respect for the rule of law and democratic accountability, emphasizing that "no one—certainly not the chair of the Federal Reserve—is above the law." The White House has yet to issue a comment on Powell's statement as of late Sunday.