Global central banks rally after DOJ probes Powell
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Washington — The Justice Department opened a criminal probe into Federal Reserve Chair Jerome Powell over testimony and cost overruns in the Fed's headquarters renovation, revelations that surfaced late Sunday and prompted political and market concerns. Republican senators including Thom Tillis signaled they would block Trump nominees until the investigation resolves, while Treasury Secretary Scott Bessent warned the president the probe could unsettle markets and confirmations. Global central bankers issued a Jan. 13 statement defending Fed independence, and several Fed officials publicly supported Powell. President Trump said he would name a nominee within weeks. Based on 6 articles reviewed and research.
Prepared by Lauren Mitchell and reviewed by editorial team.
Timeline of Events
- June (previous year) — Jerome Powell testified to Congress about Fed building renovation and costs.
- Renovation reported to have surged beyond initial estimates, public accounts cited figures above $2.5 billion.
- Late Sunday — Department of Justice subpoenas and a criminal probe into Powell over testimony became public.
- Jan. 13 — Central bankers from the ECB, Bank of England and others issued a joint statement backing Fed independence.
- Jan. 14 — Fed policymakers and officials publicly defended Powell; Fed Governor Stephen Miran commented on foreign central banker interventions.
- Articles Published:
- 6
- Right Leaning:
- 0
- Left Leaning:
- 1
- Neutral:
- 5
- Distribution:
- Left 17%, Center 83%, Right 0%
Global central banks, monetary-policy advocates, and defenders of institutional independence benefited by publicly reinforcing central-bank autonomy and rallying diplomatic and professional support for the Fed and Chair Powell, which may strengthen norms against political interference.
President Trump and his administration faced political and confirmation costs, while markets and nominees confronted short-term uncertainty and potential delays as the DOJ probe raised questions about oversight and politicization of monetary institutions.
Coverage of Story:
From Left
DOJ investigation of Fed Chair Powell sparks backlash, support for Fed independence
The Philadelphia InquirerFrom Center
Global central banks rally after DOJ probes Powell
mint TRT World The Straits Times Free Malaysia Today Kitco.comFrom Right
No right-leaning sources found for this story.
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