On January 11, the Department of Justice announced that it was opening a criminal investigation into Federal Reserve chair Jerome Powell over charges that he had misled Congress about the cost of refurbishments to the Fed’s headquarters. There is little reason to view these investigations as anything other than a politically motivated attack. Documents shared with the Financial Times reveal that the Fed chair had written to Congress about cost overruns in July, and there is thus far no evidence that the Justice Department attempted to contact Powell to address these issues before launching a criminal investigation.
Seen in the context of Donald Trump’s first year in office, the charges against Powell are part of a broader campaign of lawfare against political enemies or liberals who hold positions that the president would like to see filled by allies. But this is the first time that criminal charges have been brought against a sitting chair of the Federal Reserve. In this respect, concern about the erosion of democratic norms is not unfounded — Trump’s actions are truly unprecedented.
At 7 p.m. on January 11, just hours after the Department of Justice’s Jeanine Pirro announced her investigation, Powell took to the Federal Reserve’s social media accounts and posted a two-minute video in which he set out to expose the president’s real, political motivations. Trump, Powell said, was frustrated that the Fed had not lowered interest rates fast enough, and he was willing to undermine the institution’s independence to get his way.
This confrontation, much like Trump’s attempt in August 2025 to fire Fed governor Lisa Cook, encouraged observers to interpret the current moment as emblematic of the wider struggle, between liberal defenders of the rule of law and a mafioso president, that has defined Trump’s first and second terms in office. This framing should be resisted. Not only does it obscure the stakes of the conflict, but it also sanitizes…
Auteur: Mona Ali
