Constitutional Crisis? Powell Accuses DOJ of Using Criminal Charges to Force Interest Rate Cuts
In an unprecedented move, Fed Chair Jerome Powell warned that the U.S. central bank is under siege. In a video statement released January 11, 2026, Powell revealed the DOJ served the Fed with grand jury subpoenas, threatening a criminal indictment.
The Breakdown
The Official Probe: The DOJ is investigating whether Powell gave "misleading testimony" to Congress regarding the $2.5 billion renovation of the Fed’s headquarters.
Powell’s Counter-Claim: He explicitly called the investigation a "pretext" designed to intimidate the Fed into lowering interest rates, as President Trump has demanded.
The Stand: Powell stated he will not let political pressure dictate monetary policy, asserting that "public service sometimes requires standing firm in the face of threats."
Why It Matters
This isn't just a legal spat; it’s a Constitutional showdown. Since the 1950s, the Fed has operated independently of the White House to prevent political cycles from causing runaway inflation. If the DOJ uses criminal charges to sway rate decisions, that independence effectively ends.
"This is about whether the Fed will be able to continue to set interest rates based on evidence... or whether monetary policy will be directed by political pressure." — Jerome Powell
#FedVsPresident #ConstitutionalCrisis #BinanceAlphaAlert $RIVER $BGSC $ZEREBRO