Trump DOJ Moves to Revive Powell Probe After Judge Blocks Fed Subpoenas
Federal Reserve Chair Jerome Powell may stay on the central bank’s governing board if a criminal investigation tied to his leadership continues, according to newly unsealed court filings.
The revelation lands in the middle of a political and economic clash between the White House and the Federal Reserve. President Donald Trump has repeatedly demanded steep interest-rate cuts as energy prices surge and economic pressure builds.
According to Reuters and Bloomberg reporting, Powell’s attorneys told Justice Department officials earlier this year that Powell could remain on the Fed’s Board of Governors beyond the end of his chairmanship in May if the probe remains unresolved. His board term runs until 2028.
Subscribe free for daily political analysis they won’t broadcast. Join 115K+ readers →
The investigation, led by U.S. Attorney Jeanine Pirro, focuses on whether Powell misled Congress about cost overruns tied to renovations at the Federal Reserve’s Washington headquarters.
A federal judge recently blocked subpoenas targeting Powell, writing prosecutors offered no evidence of wrongdoing and suggesting the probe appeared aimed at pressuring him to lower rates or resign.
The Justice Department has since moved to reopen the case, ensuring the legal fight and the battle over Fed independence is far from over.
Subscribe free for daily political analysis they won’t broadcast. Join 115K+ readers →