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Fed vs. Justice: Powell’s Testimony Sparks Controversy

2/27/2026

Summary

Story summary

The Federal Reserve is in a legal dispute with the Justice Department over subpoenas linked to Chairman Jerome Powell's June 2025 testimony regarding renovations at its Washington headquarters.
The investigation has not resulted in any charges and has attracted criticism from President Trump, who argues the Fed is slow to lower interest rates.
Powell asserts that the investigation threatens the Fed's independence in monetary policy.
U.S. Attorney Jeanine Pirro emphasized that her office sought information before issuing subpoenas, stating that no one is above the law.
This situation complicates Trump's efforts to appoint a new Fed chair as Powell's term concludes in May.

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Story summary

The Federal Reserve is in a legal dispute with the Justice Department over subpoenas linked to Chairman Jerome Powell's June 2025 testimony regarding renovations at its Washington headquarters.
The investigation has not resulted in any charges and has attracted criticism from President Trump, who argues the Fed is slow to lower interest rates.
Powell asserts that the investigation threatens the Fed's independence in monetary policy.
U.S. Attorney Jeanine Pirro emphasized that her office sought information before issuing subpoenas, stating that no one is above the law.
This situation complicates Trump's efforts to appoint a new Fed chair as Powell's term concludes in May.