Powell’s stunning rebuke to Trump as DOJ launches criminal probe

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Previously titled “Fed Chair Powell is under criminal investigation. What to know.” — renamed by the publisher on Aug 2, 2026

Apple News Today 17 min 9 speakers 8 chapters transcribed
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What prompted the criminal investigation into Fed Chair Jerome Powell?

Shumita Basu 0:05
Good morning. Fed Chair Jerome Powell says the Trump administration is threatening him with a criminal indictment. And he's not mincing words.
Jerome Powell 0:13
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.
Shumita Basu 0:23
Plus, Iran's protests stretch past the two-week mark as the regime cracks down hard with fatal force and an internet blackout. And a first at the Golden Globes last night, an award for best podcast. It's Monday, January 12th. I'm Shamita Basu. This is Apple News Today.
Shumita Basu 0:51
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.
Jerome Powell 1:01
No one, certainly not the chair of the Federal Reserve, is above the law. But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure.
Shumita Basu 1:12
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.

How has Jerome Powell responded to the allegations against him?

Shumita Basu 1:28
But Powell claimed this was a pretext.
Jerome Powell 1:31
The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.
Shumita Basu 1:42
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.
Jerome Powell 2:25
You just added in a third building is what that is. That's a third building.
Donald Trump 2:28
It's a building that's being built.
Jerome Powell 2:30
It was built five years ago.
Donald Trump 2:32
We finished Martin five years ago. It's part of the overall work.
Shumita Basu 2:36
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.

What are the implications of political pressure on the Federal Reserve?

Shumita Basu 2:45
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.
Jerome Powell 3:08
No one in office wants to do a major renovation of a historic building during their term in office. Much prefer to leave that to your successors. And this is a great example why, let alone two historic buildings that needed a lot of work. But we decided to take it on because, honestly, when I was the administrative governor before I came chair, I came to understand how badly the Eccles building really needed a serious renovation. It never had one. It was not really safe and it was not waterproof and that kind of thing. So we took it on.
Shumita Basu 3:37
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. Trump has already sought to fire Fed Governor Lisa Cook over allegations of mortgage fraud that she denies and is challenging at the Supreme Court. It's worth saying, though, that while Trump has frequently sought to prosecute political foes during his second term, so far he hasn't had much success with convictions.

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