DOJ Probe Spurs Debate Over Fed Independence, Inflation
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Washington — The Justice Department opened a criminal investigation into Federal Reserve Chair Jerome Powell this week over disclosures and testimony tied to a long‑planned Fed headquarters renovation. Powell disclosed subpoenas and said prosecutors threatened criminal charges; former Fed chairs and several Republican senators defended Fed independence. Labor Department data on Jan. 13 showed consumer prices rose 0.3% in December and core inflation rose 0.2%, providing economic context for policy discussions. Powell's term expires in 2026, raising renomination questions ahead. Based on 6 articles reviewed and supporting research.
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Timeline
- 1. Long-planned Federal Reserve building renovation initiated and budgeted.
- 2. June: Powell testified before the Senate Banking Committee about renovation costs.
- 3. Federal prosecutors launched a criminal investigation and issued subpoenas related to disclosures.
- 4. Powell publicly disclosed subpoenas and reported prosecutors threatened criminal charges.
- 5. Jan. 13: Labor Department released December CPI showing 0.3% monthly increase and 0.2% core rise.
Sources
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