Story perspectives

DOJ Probes Fed Chair Powell Amid Political Tensions

1/16/2026

Summary

Powell Under Investigation

The Department of Justice is investigating Jerome Powell, the Federal Reserve Chair, for alleged perjury over a $2.5 billion renovation of the Federal Reserve's headquarters.
Powell says the probe is politically motivated to undermine independence and pressure him to cut rates, a demand voiced by U.S. President Donald Trump.
Republican Senators Thom Tillis and Lisa Murkowski oppose any Fed nominees named by Trump until the matter is resolved.

History

Historical Context

The Federal Reserve Act, enacted on December 23, 1913, established the Federal Reserve System in response to the Panic of 1907, which revealed the need for a central banking authority to stabilize the economy. This act aimed to prevent future financial crises by creating a flexible monetary system. Ongoing scrutiny of Jerome Powell highlights persistent tensions between political influence and the Fed's independence, echoing historical debates over monetary policy.

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Powell Under Investigation

The Department of Justice is investigating Jerome Powell, the Federal Reserve Chair, for alleged perjury over a $2.5 billion renovation of the Federal Reserve's headquarters.
Powell says the probe is politically motivated to undermine independence and pressure him to cut rates, a demand voiced by U.S. President Donald Trump.
Republican Senators Thom Tillis and Lisa Murkowski oppose any Fed nominees named by Trump until the matter is resolved.

1 / 2