Fed Chairman unexpectedly faces criminal investigation.

(Dan Tri Newspaper) - The United States has unexpectedly launched a criminal investigation into the Chairman of the Federal Reserve (Fed), Jerome Powell.

U.S. federal prosecutors have launched a criminal investigation into Federal Reserve Chairman Jerome Powell over the project to renovate the central bank's headquarters in Washington and allegations that Powell lied to Congress about the project's scale, according to The New York Times .

Mr. Powell confirmed that federal prosecutors have opened a criminal investigation into him.

"On Friday, the Justice Department sent a grand jury subpoena to the Fed, threatening criminal prosecution in connection with my testimony before the Senate Banking Committee last June. That testimony was partly about a potentially multi-year renovation project for the Fed's office buildings," Powell said in a video posted to the Fed's X account.

According to Powell, the administration's actions were essentially part of an effort to pressure and intimidate him, stemming from the Fed's interest rate adjustments that displeased President Donald Trump.

He argued that the prosecutors' investigation stemmed from the Fed setting interest rates "based on the best assessment of what is in the public interest, rather than following the wishes of U.S. President Donald Trump."

"The question here is whether the Fed can continue to set interest rates based on economic conditions, or whether monetary policy will be dominated by political pressure or threats," Powell added.

Chad Gilmartin, a spokesman for the Justice Ministry, declined to comment on the investigation, but said the Justice Minister "prioritizes investigating any abuse of taxpayers' money."

Federal Reserve Chairman Jerome Powell (Photo: Getty).

Last year, President Trump repeatedly attacked the Fed and Powell for not cutting interest rates as quickly and aggressively as he demanded. He even threatened to sue and fire the Fed Chairman, and announced the dismissal of Fed Governor Lisa Cook. However, this decision was blocked by a federal appeals court in Washington.

The US President also visited the Fed's headquarters renovation project in Washington in July 2025. He argued with Chairman Powell in front of the cameras when discussing the cost of the agency's infrastructure renovation. In a post on Truth Social, he criticized Powell for "terrible" management, spending "$3 billion on work that should have only cost $50 million."

Senator Thom Tillis, a member of the Senate Banking Committee, criticized the investigation into Powell. He stated that he would oppose the confirmation of Powell's successor, as well as any other nominee for the Fed's Board of Governors, "until this legal issue is fully resolved."

Powell's term as Fed Chairman will end in May 2026. However, his term on the Fed's Board of Governors will extend until 2028.

"There's no doubt about it. Advisers in the Trump administration are actively pushing to end the Fed's independence. Now, the independence and credibility of the Justice Department are also being questioned," Tillis concluded.

Source: https://dantri.com.vn/kinh-doanh/chu-tich-fed-bat-ngo-bi-dieu-tra-hinh-su-20260112095408594.htm