Federal Reserve Chair Jerome Powell revealed that the Justice Department has subpoenaed the Fed, potentially leading to a criminal indictment linked to his testimony before the Senate Banking Committee in June. Powell dismissed the DOJ's claims regarding over-budget renovations of Fed buildings as mere pretexts. He argued that the threat of criminal charges stems from the Fed's independence in setting interest rates, which he insists is based on economic conditions rather than political pressure, particularly from former President Trump, who has relentlessly criticized Powell for not lowering interest rates sooner. Trump's attacks on Powell have included public statements calling him unfit for the role, claiming he is “too late” and “too political.” In a recent NBC News interview, Trump insisted the subpoenas weren't intended to pressure Powell, but he also criticized Powell’s performance and stated that interest rates were too high. Meanwhile, prominent former Fed chairs, including Janet Yellen, Ben Bernanke, and Alan Greenspan, condemned the subpoenas as an unprecedented assault on the Fed's independence. They asserted that such actions reflect tactics seen in countries with weak institutions, which threaten economic stability. Reactions among lawmakers have been mixed. Republican Senator Lisa Murkowski condemned the DOJ's investigation as coercive, while Senator Thom Tillis expressed that he would oppose any Fed nominee until the legal issues are resolved. On the Democratic side, Senator Elizabeth Warren argued against confirming any Trump nominee for the Fed, framing it as an attempt to undermine the central bank. In contrast, Republican Representative Anna Paulina Luna supported the investigation, accusing Powell of lying during his testimony. Powell and others have emphasized the importance of the rule of law, suggesting that this situation illustrates ongoing attempts by the Trump administration to exert political influence over the Federal Reserve.