U.S. DOJ Launches Criminal Investigation Into Fed Chair Jerome Powell

In an unprecedented development that has sent shockwaves through global financial markets, the U.S. Department of Justice has launched a criminal investigation into Federal Reserve Chair Jerome Powell, a move that sharply escalates President Donald Trump’s long-running conflict with the country’s central bank. Powell confirmed the investigation in a brief statement, saying he would fully cooperate while stressing his commitment to the independence of the Federal Reserve.

The inquiry marks a rare and dramatic moment in modern U.S. history, as no sitting Fed chair has previously faced a criminal probe of this nature. While details of the investigation remain limited, officials familiar with the matter say it centers on alleged conduct related to regulatory decisions made during Powell’s tenure. The Justice Department has declined to comment on the scope or timeline of the case.

The political implications are already profound. President Trump has repeatedly criticized Powell over interest rate policies, accusing the Fed of undermining economic growth. The launch of a criminal investigation now raises serious questions about political pressure on an institution designed to operate independently of the White House.

Financial markets reacted swiftly. U.S. stocks slipped in early trading, while the dollar weakened against major currencies as investors weighed the potential impact on monetary policy stability. Bond yields fluctuated sharply, reflecting uncertainty about whether the investigation could influence future Federal Reserve decisions.

Legal and economic experts warn that the situation could have lasting consequences. “The strength of the U.S. financial system rests on the credibility and independence of the Federal Reserve,” said a former Treasury official. “Any perception that law enforcement is being used to settle political disputes risks damaging that credibility, not just at home but globally.”

Powell, who has led the Fed through periods of pandemic recovery, inflation surges, and volatile markets, said in his statement that the central bank would continue to focus on its mandate of price stability and maximum employment. “The Federal Reserve remains committed to serving the American people based on economic data, not political considerations,” he said.

As the investigation unfolds, Washington is bracing for a new phase in the already tense relationship between the White House and the Fed. For investors, policymakers, and ordinary Americans alike, the coming weeks may prove decisive in shaping confidence in the country’s economic leadership — and in the principle that independent institutions remain above political battles.

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