Shumita Basu

I'm Shamita Basu.

This is Apple News Today.

Let's start with the Fed.

Last night, Chair Jerome Powell posted a sharp, succinct response to the news that federal prosecutors are opening an investigation into him.

Powell's video, uploaded to an official X account usually reserved for dry economic data updates, is a stunning rebuke against the White House.

He said the DOJ threats ostensibly focused on his congressional testimony related to the Fed's building renovation work.

But Powell claimed this was a pretext.

In a brief interview with NBC last night, President Trump denied knowing anything about the investigation.

For months now, he has attacked Powell for refusing to lower interest rates faster.

And he's often floated the possibility of firing Powell, something that would be legally difficult.

Many experts agree Trump would need to prove cause, which has been generally interpreted to be gross misconduct or fraud.

That's where the headquarters renovation could come in.

Trump has frequently criticized Powell for the cost of the roughly $2.5 billion building upgrade, most memorably during a tour of the site last July, where cameras rolled as the two disagreed about the total cost of the project.

Some have speculated whether Trump will use the renovation project as a way to remove Powell and install someone who will lower rates to his will.

According to The Wall Street Journal, the DOJ investigation is being run out of the office of Washington, D.C.

attorney and close Trump ally Jeanine Pirro.

It appears to center on Powell's statements to the Senate Banking Committee back in June regarding the renovation.

There, he accepted there were cost overruns, but dismissed many of the media reports claiming extravagant spending.

A Justice Department spokesperson declined to comment on the investigation to The Wall Street Journal, but said Attorney General Pam Bondi, quote, has instructed her U.S.

attorneys to prioritize investigating any abuses of taxpayer dollars.