Jerome Powell Under Federal Investigation: What’s Really Going On Behind the Scenes?
The US Department of Justice has launched a federal criminal investigation into Federal Reserve Chairman Jerome Powell.
The information was publicly confirmed by Powell himself on January 11, 2026, and the topic is already being covered by all major global media outlets.
What triggered the investigation
The investigation was initiated by federal prosecutors in Washington and is linked to Jerome Powell’s testimony before the Senate Banking Committee in June 2025.
At the time, Powell was questioned about a large-scale renovation project of the Federal Reserve building in Washington – a project with an estimated cost of around $2.5 billion.
The focus of the inquiry is whether the information presented to Congress regarding the scope and cost of the project was complete and accurate, or whether key details were omitted.
At the end of last week, the Department of Justice sent grand jury subpoenas to the Federal Reserve to collect documents and internal communications that could clarify how the project was presented to lawmakers.
Powell’s position
Powell described the investigation as unprecedented and said it was politically motivated rather than related to the project itself.
According to him, the pressure comes against the backdrop of the ongoing conflict between the Federal Reserve and President Donald Trump's administration, mainly over interest rate policy.
Powell stressed that he would continue to fulfill his duties and defend the independence of the Federal Reserve.
Why this matters for the markets
Such action against a sitting Fed Chair is extremely rare and creates additional tension:
- uncertainty around future interest rate policy
- questions about the independence of the central bank
- heightened market sensitivity to macroeconomic news
In moments like these, investors typically become more cautious, and alternative assets such as cryptocurrencies tend to come back into focus.
What we know so far
- no charges have been filed
- the investigation is at an early stage
- documents and testimonies are being reviewed
- Powell remains in his position
The situation is expected to continue developing over the coming weeks.
In periods of institutional tension and political pressure on central banks, access to fast, transparent, and independent financial instruments becomes even more important.
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