Justice department opens investigation into Jerome Powell as Trump ramps up campaign against Federal
Fed chair accuses DoJ of threatening criminal charges over building renovation projects because central bank defied Trump’s interest rate demands The investigation, which became public on January 11, 2026, centers on allegations regarding a $2.5 billion renovation of the Federal Reserve’s headquarters in Washington, D.C. Here is the breakdown of the situation: As of January 13, 2026, the conflict between the White House and the Federal Reserve has escalated into a full-blown constitutional and legal crisis. Here is a summary of the situation based on the reports you provided:
🏛️ The Core Conflict: Criminal Subpoenas The Department of Justice (DOJ) has officially opened a criminal investigation into Federal Reserve Chairman Jerome Powell. On Friday, January 9, 2026, the Fed was served with grand jury subpoenas, threatening a criminal indictment. The Allegation: The probe focuses on whether Powell lied to Congress during his June 2025 testimony regarding the multi-billion dollar renovations of the Fed’s historic headquarters in Washington, D.C. The Figures: Trump allies have targeted the project for months, claiming it was "mishandled." While Powell maintains the costs were transparent, the DOJ is examining spending records and Powell’s public statements for inconsistencies. The Decision-Maker: The inquiry was approved in November 2025 by Jeanine Pirro, the U.S. Attorney for the District of Columbia and a close ally of President Trump. 🛡️ Powell’s Defense: "A Pretext for Pressure" In a defiant video statement released on Sunday, Powell hit back, framing the investigation as a political hit job rather than a legal inquiry. The "Pretext": Powell argued that the renovation budget is merely a "pretext" used by the administration to punish the Fed for its interest rate decisions. Independence at Stake: He explicitly stated that the threat of criminal charges is a direct consequence of the Fed refusing to bow to Trump’s demands for rapid rate cuts. The Stakes: Powell warned that this is a battle over whether monetary policy will be guided by economic evidence or political intimidation. 📉 Broader Context: The Move to Seize Control This investigation is seen by many economists and analysts as the most aggressive step yet in the Trump administration's campaign to end the Fed’s century-long independence. Personnel War: The administration has already placed loyalists on the Board of Governors and is currently attempting to fire Governor Lisa Cook over unconfirmed allegations. Market Shock: The prospect of a Fed Chairman being indicted has stunned global markets, sending gold and silver to record highs as investors fear the destabilization of the U.S. financial system. Detail Status Target. Fed Chair Jerome Powell Legal Action Grand Jury Subpoenas issued (Jan 9, 2026) Alleged Crime. Perjury/Misleading Congress regarding building renovations Real Motiv (per Powell) Retaliation for refusing to cut interest rates Key Official U.S. Attorney Jeanine Pirro
In the coming weeks, the eyes of the world will be on the D.C. District Court and the Supreme Court. Whether Powell remains at the helm or is forced out, the outcome will decide a fundamental question: Will the "price of money" be determined by objective economic data, or by the political will of the President? As markets remain on edge and gold reaches historic levels, one thing is certain—the era of the Fed’s quiet, behind-the-scenes influence is over. The battle for the future of the dollar has moved from the boardroom to the courtroom. #TrumpVsPowell #FedIndependence #JeromePowell #CryptoNews #Bitcoin #Ethereum #BinanceNews #FederalReserve #CryptoMarket #BTC #ETH #XRP #SOL #BreakingNews
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