Fed Chair Powell says he was threatened with criminal indictment by Trump administration

Federal Reserve Chair Jerome Powell said the Department of Justice served grand jury subpoenas threatening a criminal indictment tied to his June testimony about a Fed building project; Republican Senator Thom Tillis said he would oppose Trump nominees to the Fed until the matter is resolved.

Federal Reserve Chair Jerome Powell said on Sunday that the Department of Justice served grand jury subpoenas that threatened a criminal indictment related to his June testimony before the Senate Banking Committee about a Federal Reserve building project. Powell characterized the action as a pretext intended to increase the administration's influence over the central bank and its interest rate decisions. Republican Senator Thom Tillis said the threatened indictment called the Justice Department's independence and credibility into question and said he would oppose Trump nominees to the Fed until the legal matter is fully resolved. President Donald Trump told NBC News he had no knowledge of the Justice Department's actions and criticized Powell, and the Justice Department had no immediate comment. Key facts: - The Department of Justice served grand jury subpoenas that Powell said threatened a criminal indictment tied to his June congressional testimony on a Fed building project. - Powell described the move as a pretext to pressure the Federal Reserve and influence its rate-setting decisions. - Senator Thom Tillis said he would oppose any Trump nominees to the Federal Reserve until the legal matter is fully resolved and questioned the Justice Department's independence. - President Trump said he did not know about the Justice Department action and criticized Powell; the Justice Department offered no immediate comment. Summary: The disclosures produced immediate political fallout, including public statements by a Senate Republican about blocking Fed nominees while the matter remains unsettled. Undetermined at this time.