- The US Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell concerning renovations to the Fed's Washington DC offices.
- Powell stated in a video message that the criminal probe is a pretext to pressure the central bank into lowering interest rates, which President Trump has repeatedly called for.
- Former Federal Reserve Chairs Alan Greenspan, Ben Bernanke, and Janet Yellen, along with former Treasury Secretaries, released a joint statement defending Powell and calling the investigation an unprecedented attempt to undermine the Fed's independence.
- The perceived threat to the Fed's independence could prompt Powell to break precedent and remain on the Board of Governors until 2028, even after his term as chairman ends in May.
- Both House Republicans and Senate Republicans have joined a bipartisan chorus criticizing the DOJ investigation, arguing it is an abuse of the Justice Department's power.
Fed governor Michael Barr calls DOJ probe into chair Powell an assault on central bank independence
Jan 15, 2026, 3:34:11 PM UTC(7 hours ago)
Impact: Medium
Affected Assets
Sources
From:@YahooFinance
The DOJ's investigation into Fed chair Powell is "an assault on the independence of the Fed," Federal Reserve governor Michael Barr tells
@Jenniferisms. https://t.co/KEVwtu38R1
