Federal Reserve chairman Jerome Powell rejected 'unprecedented action', saying it was a pretext to rein in the Fed’s independence. Photograph: Alex Wong/Getty ImagesUS prosecutors have launched a criminal investigation into Federal Reserve chairman Jerome Powell over a $2.5 billion renovation of the US central bank’s headquarters, sharply escalating the Trump administration’s attacks on the Fed. “This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” Mr Powell said. During their investigations, prosecutors sometimes notify subjects before they seek an indictment in order to give them a chance to testify, justice department guidelines show. Mr Trump has already attempted to fire Fed governor Lisa Cook over allegations of mortgage fraud, which are under investigation.

Source: The Irish Times January 12, 2026 09:43 UTC