Investigating the Fed chair is a red line for some Republicans

The U.S. Justice Department has opened a criminal investigation into Federal Reserve Chair Jerome Powell, reported as centred on his testimony about a costly Fed building renovation. Several Republican lawmakers and former Fed officials have criticized the probe and the Supreme Court is set to hear Fed governor Lisa Cook's case on Jan. 21.

The Department of Justice has launched a criminal investigation into Federal Reserve Chair Jerome Powell, reported as focusing on whether he misstated facts about a major renovation of the Fed headquarters. The inquiry follows public disputes between President Donald Trump and Powell over interest-rate policy and the renovation project. Powell and many former officials have framed the probe as a threat to the Fed's independence. Some Republican members of Congress have publicly opposed the investigation and called for oversight. Key developments: - The Justice Department opened a criminal inquiry into Chair Jerome Powell, reported as relating to his testimony about the Fed headquarters renovation. - Powell has said the threat of charges reflects his independent decision-making rather than yielding to political pressure. - Every living former Fed chair and several former Treasury officials publicly criticized the Justice Department's actions in a joint statement. - Some Republican lawmakers, including Sen. Lisa Murkowski and Sen. Kevin Cramer, expressed concern and called for congressional review of the Justice Department's actions; Rep. French Hill defended Powell's integrity. - A related legal proceeding: Fed governor Lisa Cook's court case challenging efforts to remove her is scheduled for argument before the U.S. Supreme Court on Jan. 21. Summary: The investigation has prompted concern from a range of former officials and some Republicans who say it raises questions about preserving central bank independence. Congressional oversight and the Supreme Court hearing on Jan. 21 are the immediate procedural developments to watch, and the impending end of Powell's term in May will bring further political attention to any nominations and confirmation considerations.