Fed Chair Jerome Powell calls DOJ subpoenas ‘unprecedented’, says rate policy under political pressure

Jerome H. Powell, Chair of the Federal Reserve, on Friday said the U.S. Department of Justice has served the Federal Reserve with grand jury subpoenas that threaten criminal indictment linked to his testimony before the Senate Banking Committee last June.

In a formal public statement released on January 11, 2026, Powell said the subpoenas relate in part to a multi-year project to renovate historic Federal Reserve office buildings. He stressed that he respects the rule of law and accountability in a democracy, noting that no one — including the chair of the Federal Reserve — is above the law. However, he described the move as “unprecedented” and said it should be viewed in the wider context of sustained pressure on the central bank.

Powell argued that the threat of criminal charges is not about his testimony, the renovation project, or congressional oversight. He said the Federal Reserve had made every effort through testimony and public disclosures to keep Congress fully informed about the renovation. According to Powell, those issues are being used as pretexts.

The Fed Chair said the real issue, in his view, is the Federal Reserve’s independence in setting interest rates. He stated that the current threat stems from the central bank making rate decisions based on its best assessment of what serves the public interest, rather than following the preferences of the President.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions,” Powell said, “or whether monetary policy will instead be directed by political pressure or intimidation.”

Powell also underscored his long tenure at the Federal Reserve, noting that he has served under four different administrations, both Republican and Democratic. He said that throughout his service he has carried out his responsibilities without political fear or favour, focusing solely on the Fed’s dual mandate of price stability and maximum employment.

Concluding his statement, Powell said public service sometimes requires standing firm in the face of threats and reaffirmed that he would continue to do the job he was confirmed by the Senate to perform, with integrity and a commitment to serving the American people.