US Federal Reserve Chair Jerome Powell confirmed in a statement late on Jan. 11 (local time) that the Trump administration had threatened him with criminal prosecution over testimony he gave to the U.S. Congress in the summer of 2025 and that a subpoena was issued to the Fed on Jan. 9.
Powell stated that a grand jury subpoena was served last Friday, threatening criminal action against him related to his June testimony before the Senate, which concerned the renovation of a historic building. He emphasized that no one is above the law but described this unprecedented move as part of a broader context of government threats and continued pressure on the Federal Reserve.
The Fed Chair argued that the new threat is not truly about his testimony or the renovation project but rather an "excuse." He believes the real issue is the Fed's ability to set interest rates based on the public interest rather than presidential preferences. Powell raised a broader concern: whether the Fed can continue to make interest rate decisions based on evidence and economic conditions or if it will succumb to political pressure and intimidation.
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