{"id":"f-e550251d2f-5dbcabe4-469d-531a-ae6d-2e6423312a1c","title":"'Trump abusing law': Senators, analysts on Justice Dept's probe into Fed's Jerome Powell","description":"The US attorney’s office in the District of Columbia has opened a criminal investigation into Powell over the renovation project and whether he lied to Congress about its project.","timestamp":1768210511,"category":"international","headline":"'Trump abusing law': Senators, analysts on Justice Dept's probe into Fed's Jerome Powell","modifiedHeadline":"Trump Accused of Misusing DOJ on Powell Probe","subCategories":["scid_7a1f2a1b"],"region":"IN","bundleMetaData":{"bundleId":"1bfabe6b-695a-4fbe-92e1-db426e6ba232","bundleTitle":"Tracking Trump","cardData":null},"iabCategoryId":"386","fcSummary":"Tensions escalate between the White House and Fed as Chair Powell reveals threats of criminal indictment over building renovations. Critics fear political pressure is undermining the Fed's independence, with concerns raised about the stability of the US economy.","summary":"Justice Dept. investigates Fed Chair Powell over renovation project & alleged lies to Congress. A shocking abuse of power alleged!","ctaUrl":"https://trends.glance.com/newz/World_News/IN/en/cnbc-tv18/f-e550251d2f-5dbcabe4-469d-531a-ae6d-2e6423312a1c","sourceUrl":"https://www.cnbctv18.com/world/trump-abusing-law-senators-analysts-on-justice-dept-probe-into-feds-jerome-powell-ws-l-19818928.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/vzCoEEJtL8Z0.webp","content":"Tensions between the White House and the US Federal Reserve have reached a boiling point, with Fed Chair Jerome Powell revealing that the administration has threatened him with a criminal indictment over renovations to the Fed’s historic office buildings.\n
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\n According to a report in The New York Times, the US attorney’s office in the District of Columbia has opened a criminal investigation into Powell over the renovation project and whether he lied to Congress about its scope.\n
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\n In a statement on Sunday, Powell argued he claimed he was threatened because the Fed had set interest rates “based on our best assessment of what will serve the public, rather than following the preferences of the president”.\n
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\n \"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation,\" he added. As per the report, his investigation will be overseen by the US Attorney's Office for the District of Columbia.\n
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Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
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\n — Federal Reserve (@federalreserve) January 12, 2026\n

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Trump has been critical of Powell and the Fed, demanding rapid rate cuts and attempting to curtail the central bank's independence.\n
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\n Critics have expressed concerns that Trump's effort to remove the Fed chair would undermine the institution's ability to set interest rates independently from the president.\n
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Here is what lawmakers, investors and market analysts are saying:\n\n
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\n North Carolina Republican Senator Thom Tillis, a member of the Senate Banking Committee, quickly opposed the move. He has stated that he will reject Trump's nomination of Powell's replacement, as well as any other Fed Board nominee.\n
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\n In an official statement, Tillis said, \"I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.”\n
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\n \"If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,\" he added.\n
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\n According to Senator Elizabeth Warren, a Democrat, she believed Trump's objective was to remove Powell from the Fed board \"to complete his corrupt takeover of our central bank.\"\n
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\n In a post on X, Warren wrote, “He is abusing the law like a wannabe dictator, so the Fed serves him and his billionaire friends. The Senate must not move ANY Trump Fed nominee.”\n
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\n A senior House Republican criticised the criminal investigation into Powell, stating that the administration is \"setting a standard they cannot achieve themselves and will haunt us all for a generation\".\n
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\n “Will they stop at nothing to force their way on everything?” the Republican was quoted as saying by POLITICO.\n
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\n According to Senate Minority Leader Chuck Schumer, a Democrat from New York, Trump's \"assault on the Fed's independence continues,\" and the president is threatening the strength and stability of the US economy.\n
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\n \"This is the kind of bullying that we’ve all come to expect from Donald Trump and his cronies. Anyone who is independent and doesn’t just fall in line behind Trump gets investigated. Jay Powell and the Fed aren’t the reason Trump’s economy and his poll numbers are in the toilet. If he’s looking for the person who caused that he should look in the mirror,\" he wrote on X.\n
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Donald Trump’s assault on the Fed’s independence
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continues, threatening the strength and stability of our economy.
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\n This is the kind of bullying that we’ve all come to expect from Donald Trump and his cronies. Anyone who is independent and doesn’t just fall in line behind Trump… https://t.co/KkVLw3rbfr\n
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\n — Chuck Schumer (@SenSchumer) January 12, 2026\n

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\n Jason Furman, former top economic adviser to President Obama and now at Harvard University, has also praised Powell as a ‘true statesman’ for resisting political pressure from the White House.\n
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\n On X, he said, \"A terrific statement from a true statesman. I am grateful for everything Chair Powell is doing to resist this outrageous attempt by the President to use lawfare to subvert the Fed’s responsibility to pursue the objectives set for it by law—maximum employment and price stability.”\n
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\n Brian Jacobsen, chief economist at Annex Wealth Management, suggests Powell might \"protest by staging a sit-in\" and choose to stay on as a Federal Reserve governor after his term as Chair ends in May 2026.\n
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\n \"His term as Chair is up in May, but his term as a governor isn’t up until January 2028. With the political pressure on the Fed, he may choose to stay on as a governor out of spite. It would deprive President Trump of the ability to stack the board with another appointee,\" Jacobsen was quoted as saying by Reuters.\n
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\n Karl Schamotta, Chief Market Strategist at Corpay, cautioned that these aggressive tactics could backfire by driving up inflation expectations and weakening the dollar’s status as a safe-haven asset.\n
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\n Schamotta added that this pressure might trigger a surge in long-term bond yields, leading to higher borrowing costs throughout the US economy.\n
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\n \"Tonight's revelations mark a dramatic escalation in the administration's effort to kick the legs out from under the Fed, and could unleash a series of unintended consequences that go directly against President Trump's stated aims,\" the Strategist added.","readDurationInMinutes":"10","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["Powell: WH threatened indictment over Fed building & rates set independently. (88)","Investigation led by US Attorney in DC; Trump criticized Fed's rate policy. (84)","Tillis opposes Fed nominees, Warren slams Trump for Fed \"takeover\". (88)"],"tags":["JeromePowell","FederalReserve","DonaldTrump","FedIndependence","CriminalInvestigation","InterestRates","MonetaryPolicy","USEconomy","PoliticalPressure","ThomTillis","ElizabethWarren","ChuckSchumer","JasonFurman","BrianJacobsen","KarlSchamotta","DOJProbe","SenateBankingCommittee","TrumpAdministration","Lawfare"],"consent":true,"redirectionEnabled":false}

'Trump abusing law': Senators, analysts on Justice Dept's probe into Fed's Jerome Powell

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