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.
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Timeline
- 1. June (previous year) — Jerome Powell testified to Congress about Fed building renovation and costs.
- 2. Renovation reported to have surged beyond initial estimates, public accounts cited figures above $2.5 billion.
- 3. Late Sunday — Department of Justice subpoenas and a criminal probe into Powell over testimony became public.
- 4. Jan. 13 — Central bankers from the ECB, Bank of England and others issued a joint statement backing Fed independence.
- 5. Jan. 14 — Fed policymakers and officials publicly defended Powell; Fed Governor Stephen Miran commented on foreign central banker interventions.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
