Trending:Iran protestsMerz in IndiaJerome PowellAnti-ICE protestsGolden Globes 2026India vs NZWhat Donald Trump is doing to 'get rid' of Fed chief Jerome PowellFP Explainers • January 12, 2026, 14:30:33 ISTWhatsapp Facebook TwitterUS President Donald Trump’s clash with Federal Reserve Chair Jerome Powell has again escalated after the Justice Department issued subpoenas over Powell’s testimony on a $2.5 billion Fed renovation. Powell says the legal threat is a ‘pretext’ to pressure the central bank into cutting interest ratesAdvertisementSubscribe Join Us+ Follow us On GoogleChoose Firstpost on GoogleUS President Donald Trump and Federal Reserve Chair Jerome Powell speak during a tour of the Federal Reserve Board building, which is currently undergoing renovations, in Washington, DC, US, July 24, 2025. File Image/ReutersUnited States President Donald Trump is at loggerheads with Federal Reserve Chair Jerome Powell, the latter of whom has now been subpoenaed by the Justice Department (DoJ). At the centre of the controversy is Powell’s testimony to the Senate Banking Committee regarding the Federal Reserve’s $2.5 billion renovation of two office buildings in Washington, DC. The grand jury subpoenas issued have been linked to that testimony, a move Powell has described as an attempt to pressure the Fed into following the White House’s preferred monetary policy. STORY CONTINUES BELOW THIS ADWhy Fed has been targeted by DoJThe latest escalation became public when Powell disclosed that the Justice Department had issued subpoenas to the Federal Reserve concerning his statements to Congress about the Fed’s headquarters renovation.“On Friday [January 9, 2026], the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June,” Powell said. More from Explainers Denmark warns US over Greenland.
