Hey folks! Big news from the US Fed… 📢 On Sunday Jan 11, 2026, the Federal Reserve confirmed that DOJ prosecutors have launched an investigation into Fed Chair Jerome Powell over the central bank's multi-billion-dollar HQ renovation project.
According to a Fed statement, last Friday the DOJ served grand jury subpoenas "threatening a criminal indictment" tied to Powell's June Senate Banking Committee testimony about the multi-year renovation of historic Fed office buildings. 🚧
Powell fired back, saying this move is "unprecedented" and looks like political pressure to sway monetary policy. He stressed the Fed must set interest rates based on hard data and economic conditions— not presidential preferences. 📈
Since taking office in Jan 2025, President Donald Trump has publicly bashed Powell for not cutting rates quickly enough. Now, with Powell's term running until May 2026, questions loom: Will the Fed stay independent or bend under political heat? 🔥
For Asia-watchers, any shake-up at the Fed can ripple through global markets—from emerging tech stocks in Bangalore and Jakarta to forex moves in Mumbai and Manila. 🌏
We'll keep an eye on developments as Powell vows to "continue the job with integrity," and the DOJ investigation unfolds. Stay tuned for more updates! 👀
Reference(s):
cgtn.com
