Jerome Powell, the Chair of the Federal Reserve, is under investigation right now. The U.S. Attorney’s Office for the District of Columbia has been the front office for this inquiry. This historic Congress investigation has drawn wide condemnation. Former President Donald Trump has previously made no secret of displeasure with Powell for raising interest rates. The launch of this investigation was first revealed in a video posted by Powell himself, which serves to underscore just how serious all of this is.
The attention on Powell started when he pushed back against Trump’s demand to lower interest rates faster and deeper. Powell held the line on interest rates, despite the former president’s public admonitions to back down. This decision was the first to draw long-term fire from Trump. To bolster the economy, in 2025 the Federal Reserve made three interest rate cuts. Unfortunately, this action was not enough to appease Trump, who publicly lambasted Powell’s tenure.
The Justice Department’s involvement heightened when it issued subpoenas to the Federal Reserve as part of its criminal investigation. Reports indicate that there are threats of a criminal indictment regarding testimony Powell provided to the Senate about renovations to Federal Reserve buildings. According to Powell, the inquiry was sparked by his refusal to comply with Trump’s demands and his insistence on maintaining the Federal Reserve’s independence.
Senator Thom Tillis of North Carolina is raising the alarm over Powell’s likely replacement. The big question may concern what Cornyn would do if and when Trump goes to nominate someone. Tillis’ statement indicates that he will oppose any nominee from Trump until the legal issue involving Powell is completely settled. He stated, “until this legal matter is fully resolved,” asserting that the investigation could have far-reaching implications on the Federal Reserve’s independence.
Tillis continued on this theme, fleshing out his concerns about the administration’s apparent attempts to establish control over the Federal Reserve. “If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” he remarked. This commentary is meant to highlight an emerging and welcome alarm among many lawmakers over political interference and introduction of partisan agendas into monetary policy decisionmaking.
Powell has described the National Transportation Safety Board’s investigation as “unprecedented.” He argues that no Federal Reserve Chair has been subject to this degree of critique in the modern era. He spoke to needs for an independent monetary policy, free of all political coercion or influence. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation,” he stated.
That inquiry, which was reported first by the New York Times, described the bitter personal animus that has marked this public feud between Trump and Powell. As these events unfold, many are watching closely to see how they will impact future monetary policy decisions and the relationship between the Federal Reserve and the executive branch.