Powell Investigated by DOJ, Fed vs White House Conflict Intensifies

Chair of the Federal Reserve Jerome Powell confirmed that the U.S. Department of Justice (DOJ) has issued a grand jury subpoena that could lead to a criminal investigation. This move follows Powell's testimony before the Senate Banking Committee last June, including his remarks about the renovation of the historic Fed building.

In his official statement, Powell emphasized his commitment to the rule of law and public accountability. However, he also signaled that this legal process cannot be separated from the growing political pressure on the central bank, especially after harsh criticism from President Donald Trump regarding Fed interest rate policies.

Powell stressed that no one is above the law, including the Chair of the Fed. Nevertheless, he views this situation as reflecting an escalation in tensions between central bank independence and executive power. He stated he will continue to fulfill his mandate with integrity, in line with the trust placed in him by the Senate and the American public.

This case adds a new layer of uncertainty for markets, amid sensitive issues such as interest rates, inflation, and the future direction of U.S. monetary policy—factors highly relevant to risk assets, including crypto.

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