A shocking twist in Washington: U.S. Federal Reserve Chair Jerome Powell is now at the center of a criminal probe over a ballooning renovation budget that soared from the original $1.9 billion to $2.5 billion. According to anonymous insiders familiar with the matter, the Justice Department has launched a criminal investigation, and Powell is directly implicated.
Criminal Probe Targets Alleged Misleading Testimony to Congress
The investigation is being led by the U.S. Attorney’s Office in Washington, D.C., and reportedly received approval in November from federal prosecutor Jeanine Pirro. Its aim is to determine whether Powell intentionally misrepresented the costs and details of the renovation during his testimony before Congress.
While it remains unclear whether a grand jury has been convened or if official subpoenas have been issued, Powell’s team has already been contacted and asked to submit documents — triggering a media storm and growing pressure on the White House, which has so far declined to comment.
Trump Demands Powell’s Resignation
Sources close to the Trump administration report that the president has expressed ongoing dissatisfaction with Powell’s leadership at the Fed, particularly regarding the costly renovation project. The first formal complaint reportedly arrived in July 2025, when Russell Vought, Director of the Office of Management and Budget, sent a letter to Powell raising “serious concerns” about his management of both the Federal Reserve and the renovation effort.
According to the 2025 budget documents, the increased costs stem primarily from rising prices in construction materials, especially in HVAC, electrical, and plumbing systems. The Fed insists the budget merely reflects market conditions, not mismanagement.
Powell Responds: “This Is Political Pressure”
On Sunday, January 11, Powell publicly confirmed that the Federal Reserve had received grand jury subpoenas. In a written and video statement, he called the investigation an unprecedented action with broader political motives.
“No one — certainly not the chair of the Federal Reserve — is above the law,” Powell said. “But this investigation is part of a broader pattern of threats and pressure coming from the administration aimed at influencing monetary policy.”
He warned that criminal charges are being used as a weapon to sway the Fed’s decisions on interest rates, which he said are based on economic data — not the president’s agenda. “The real question is whether the Fed can continue to set interest rates based on facts and public interest, or whether monetary policy will be hijacked by political intimidation.”
Trump Has a Replacement Ready
President Trump has already stated that he has a replacement lined up to take Powell’s role once his term ends in May 2026. Although the name has not been made public, betting markets like Polymarket currently show Kevin Hassett, head of the National Economic Council, as the leading candidate.
Powell’s Crisis Sparks Nationwide Debate
The legal battle surrounding the Fed chair has sharply divided public opinion and rattled investors. Some accuse Powell of misleading Congress and mishandling public funds, while others see him as a victim of political bullying. Regardless of how it ends, one thing is certain: the independence of America’s central bank is now at the heart of an intensely politicized struggle.
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