3:29Federal Reserve Chair Jerome Powell addresses the media during a press conference following a two-day session of the Federal Open Market Committee at the U.S. Federal Reserve in Washington, December 10, 2025.Kevin Lamarque/Reuters
In a significant intensification of a prolonged assault on the Federal Reserve’s autonomy, federal prosecutors have initiated a criminal inquiry into Federal Reserve Chair Jerome Powell, a fact he confirmed in a statement released on Sunday evening.
The inquiry pertains to Powell’s statements earlier this year regarding the lengthy renovation of the Federal Reserve buildings, as stated in a video message distributed by the Fed.
However, Powell asserts that it is evident the investigation is ultimately part of the Trump administration’s growing aggressive effort to coerce the Fed into reducing interest rates.
Federal Reserve Chair Jerome Powell addresses the media during a press conference following a two-day session of the Federal Open Market Committee at the U.S. Federal Reserve in Washington, December 10, 2025.Kevin Lamarque/Reuters
“This matter concerns whether the Fed will retain its ability to establish interest rates based on empirical data and economic circumstances — or whether monetary policy will instead be influenced by political coercion or intimidation,” Powell articulated.
In a statement to ABC News, a representative for Attorney General Pam Bondi remarked, “The Attorney General has directed her U.S. Attorneys to prioritize the investigation of any misuse of taxpayer funds.”
This is an evolving story. Please return for updates.
Sourse: abcnews.go.com