Justice Department opens criminal probe of Fed chair

The Justice Department has opened a criminal investigation into Federal Reserve Chair Jerome Powell tied to renovation work, and the Fed said it was served grand jury subpoenas; Powell called the action an unprecedented challenge to the Fed's independence.

Federal prosecutors have launched a criminal investigation into Federal Reserve Chair Jerome Powell, the Fed said Sunday. The inquiry is tied to renovations of the Fed's Washington headquarters. The Federal Reserve reported it was served grand jury subpoenas focused on Powell's June testimony about the renovation. Powell described the subpoenas as an unprecedented challenge to the Fed's independence and placed them in the context of political pressure to lower interest rates. Key facts: - The Department of Justice has opened a criminal investigation connected to renovations at the Federal Reserve's headquarters. - The Federal Reserve said it received grand jury subpoenas that relate to Powell's June testimony about the renovation. - Powell characterized the action as an unprecedented challenge to the Fed's independence and linked it to political pressure from the administration. - Reporting indicated the probe was approved in November by the U.S. Attorney for the District of Columbia, Jeanine Pirro. Summary: The development places the Federal Reserve under a formal criminal inquiry while officials dispute the motives behind it. The investigation is ongoing; the grand jury subpoenas indicate continuing legal proceedings, and specific next steps are undetermined at this time.