The Justice Department has opened an investigation into the Federal Reserve, intensifying scrutiny of the US central bank and prompting debate over its independence from political pressure. As part of the inquiry, a subpoena has been issued to Federal Reserve Chair Jerome Powell, according to officials familiar with the process.
The investigation comes amid renewed criticism of the Fed by Donald Trump, who has accused the institution of acting against US economic interests. Trump has denied directing or influencing the Justice Department’s actions, saying the inquiry is a matter for federal prosecutors and not the White House.
Legal and economic experts say the move raises significant questions about central bank oversight and the long-standing principle of Federal Reserve independence. While the Fed is subject to congressional oversight and legal accountability, it has traditionally operated free from direct political interference in its monetary policy decisions.
Market analysts have warned that prolonged uncertainty surrounding the investigation could affect investor confidence and financial stability, particularly if it is perceived as politicising monetary policy. The Justice Department has not detailed the scope or timeline of the inquiry, and the Federal Reserve has said it will cooperate fully while continuing to carry out its mandate.
The episode underscores broader tensions between political institutions and economic governance in the United States, with the investigation likely to fuel ongoing debate over the balance between accountability and independence at the heart of the US financial system.
