POLITICS

Global central banks rally after DOJ probes Powell

PUBLISHED Jan 13, 2026, 6:52 AM ET

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Media Bias Meter

Sources: 9

Left 11%

Center 89%

Sources: 9

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.

By Najma A. | JQJO News

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.

Media Bias

Articles Published:: 9
Right Leaning:: 0
Left Leaning:: 1
Neutral:: 8
Distribution:: Left 11%, Center 89%, Right 0%

Who Benefited

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.

Who Impacted

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.