• Federal Reserve Chair Jerome Powell is facing a criminal investigation initiated by the Trump administration.
• The investigation centers on Powell's Senate testimony regarding a $2.5 billion renovation of Fed buildings.
• Powell described the subpoenas from the Department of Justice as a "pretext" aimed at undermining Fed independence.
• President Trump has pressured Powell to lower interest rates, leading to accusations of political intimidation.
• This development raises significant concerns about the autonomy of the Federal Reserve.

Federal Reserve Chair Jerome Powell announced on Sunday that he is under criminal investigation by the Trump administration, which has issued grand jury subpoenas regarding his testimony about a renovation project of Federal Reserve buildings. This action reflects escalating pressure from the Trump administration to influence the Federal Reserve's interest rate decisions, which Powell has resisted, according to Reuters and Channel News Asia.

Powell stated that the Department of Justice's subpoenas were related not only to his June testimony but are also part of a broader campaign by the Trump administration to apply political pressure to lower interest rates. He emphasized this as a threat to the Fed's independence, which is crucial for making unencumbered monetary policy decisions, as reported by Al Jazeera and Business Insider.

In his statement, Powell explained that the investigation overshadows legitimate concerns over the renovation costs and pointed out that this intensity of inquiry had not been observed during his previous leadership tenures. He asserted, "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead, monetary policy will be directed by political pressure or intimidation," according to BBC and Los Angeles Times.

The ramifications of this investigation extend beyond Powell, suggesting a dangerous precedent for the independence of the Federal Reserve. Trump's consistent pressures on Powell have raised concerns among lawmakers, including Senator Thom Tillis, who remarked on the risks to both the Fed's and the Justice Department's credibility, referencing the situation in ABC News and South China Morning Post.

As the investigation unfolds, Powell's tenure as Fed chair, which terminates in May, remains a focal point for political maneuvering, illustrating the ongoing friction between the Federal Reserve's mandate and the administration's economic priorities, highlighted by NPR and Le Monde.