Jessica Mendoza

And since then, the Fed has cut interest rates.

So why did the Justice Department issue these subpoenas now?

The Justice Department has gone after others in the Federal Reserve as well.

After Trump said he was firing Fed Governor Lisa Cook in August, the agency opened a criminal investigation, citing alleged mortgage fraud.

Cook has denied any wrongdoing.

Courts have allowed her to remain in her job as she challenges her removal in federal court.

As for the investigation into Powell, U.S.

Attorney Jeanine Pirro defended the move.

In a post on X on Monday night, Pirro said her office had contacted the Federal Reserve about the building renovations on multiple occasions, but were ignored.

In Sunday's video, Powell candidly said what he thought the latest criminal investigation was about.

He called it a pretext.

I mean, this might be a little bit of a tangent, but like, how often do we see criminal investigations into projects that go over budget more broadly?

And as you've said, you know, this is out of character for Jerome Powell.

What does it tell you that Powell ultimately decided to respond in the way that he did so directly?

What the investigation means for the future of the Fed is next.

In Sunday's video, Fed Chair Jerome Powell made it clear that he's staying put until the end of his term.

Some allies of the president, including House Speaker Mike Johnson, have expressed support for the investigation.

But it's also drawn some notable rebukes.

According to people familiar with the matter, Treasury Secretary Scott Besant called the president on Sunday night and told him that the investigation could impact markets.

Besant was also worried that it could cause hurdles during the Senate confirmation process for the next Fed chair.