Federal Reserve Chair Jerome Powell told reporters Sunday that a Department of Justice grand‑jury subpoena targeting the Fed’s 2025 building‑renovation probe was a political ploy. He said the inquiry threatened a criminal indictment unrelated to his June 2025 congressional testimony and aimed to pressure the central bank’s ability to set interest rates free from White House influence. Donald Trump responded on NBC that he knew nothing about the investigation and later hinted he will soon name Powell’s successor, with Kevin Hassett and former governor Kevin Warsh emerging as the White House’s shortlist. Analysts at TD Cowen warned that the probe could erode market confidence, potentially nudging rates higher if investors doubt the Fed’s independence.

The same administration is fighting a separate case involving Fed Governor Lisa Cook, which the Supreme Court will decide later this month. Powell reiterated his commitment to the Fed’s dual mandate of price stability and maximum employment, emphasizing that political pressure will not alter policy decisions.