Powell Says Justice Department Subpoenaed the Fed Amid Alleged Political Intimidation

Federal Reserve Chair Jerome Powell said prosecutors served the Fed with grand jury subpoenas and are threatening a criminal indictment linked to his Senate testimony and office renovations; a government official confirmed prosecutors are looking into the Fed.

Federal Reserve Chair Jerome Powell said on Sunday that U.S. prosecutors served the Fed with grand jury subpoenas. He said the subpoenas relate to his June testimony before the Senate Banking Committee and to renovations at the Fed's Washington offices. Powell said prosecutors are threatening a criminal indictment and described the inquiries as pretexts for political interference, a claim reported as made without supporting evidence. A government official confirmed prosecutors are looking into the Fed, and Powell's video statement was posted on the Fed's official X account. Known details: - The Fed received grand jury subpoenas from the Justice Department, which Powell said arrived on Friday. - Powell said prosecutors are threatening a criminal indictment tied to his June Senate testimony and to renovations of the Fed's offices. - Powell characterized the inquiries as pretexts for political interference and said they followed the Fed's refusal to follow the president's preferences on interest rates. - A government official confirmed that prosecutors are looking into the Fed, and Powell posted a video statement on the Fed's X account. - The article notes that in July the president toured the Fed construction site and that he has criticized the renovation costs and at one point said he was considering a lawsuit. Summary: Officials report that the Justice Department has issued subpoenas and that prosecutors have been described as threatening criminal charges; Powell responded publicly and framed the inquiry as political intimidation. A government official confirmed a probe is underway. Undetermined at this time.