The Breakdown Powell Under Prosecution and the End of Fed Independence
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Jan 13, 2026 Jerome Powell is under criminal investigation, igniting a battle between the White House and the Federal Reserve. The potential fallout raises questions about central bank independence and the integrity of U.S. institutions. Powell frames the inquiry as a political attack, stirring public debate. Historical parallels to past Fed conflicts highlight the gravity of the situation. Market reactions signal anxiety about asset stability, and growing concerns about the U.S. dollar's strength are discussed amidst risks to global financial leadership.
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Powell Faces Criminal Subpoena Over Renovation
- The DOJ served grand jury subpoenas over the Fed HQ renovation, putting Jerome Powell under criminal investigation.
- Powell frames the move as political retaliation that threatens Fed independence and objective rate-setting.
Subpoena Called A Pretext For Political Pressure
- Powell argues the subpoenas are a pretext and that the real motive is to pressure the Fed on monetary policy.
- He warns this threatens the Fed's ability to set rates based on evidence rather than presidential preferences.
A Historic Executive-Fed Confrontation
- The episode frames this as an unprecedented direct clash between the executive branch and the Fed not seen since the 1951 Treasury-Fed dispute.
- The conflict risks politicizing monetary policy and undermining long-standing institutional norms.