WASHINGTON (AP) — Federal Reserve Chair Jerome Powell said Sunday the Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his testimony this summer about the Fed’s building renovations.

The move represents an unprecedented escalation in President Donald Trump’s battle with the Fed, an independent agency he has repeatedly attacked for not cutting its key interest rate as sharply as he prefers. The renewed fight will likely rattle financial markets Monday and could over time escalate borrowing costs for mortgages and other loans.

kAm%96 DF3A@6?2D C6=2E6 E@ !@H6==VD E6DE:>@?J 367@C6 E96 $6?2E6 q2?<:?8 r@>>:EE66 😕 yF?6[ E96 u65 492:C D2:5[ C682C5:?8 E96 u65VD Sa]d 3:==:@? C6?@G2E:@? @7 EH@ @77:46 3F:=5:?8D[ 2 AC@;64E E92E k2 9C67lQ9EEADi^^2A?6HD]4@>^2CE:4=6^ECF>A\A@H6==\7656C2=\C6D6CG6\3F:=5:?8\C6?@G2E:@?\abhb5h24h753hd_g7agd5_722d7c56c`Qm%CF>A 92D 4C:E:4:K65 2D 6I46DD:G6k^2m]k^Am

kAm!@H6== @? $F?52J 42DE @77 H92E 92D FA E@ E9:D A@:?E 366? 2 C6DEC2:?65 2AAC@249 E@ %CF>AVD 4C:E:4:D>D 2?5 A6CD@?2= :?DF=ED[ H9:49 96 92D >@DE=J :8?@C65] x?DE625[ !@H6== :DDF65 2 k2 9C67lQ9EEADi^^HHH]7656C2=C6D6CG6]8@G^?6HD6G6?ED^DA6649^A@H6==a_ae_“`2]9E>QmG:56@ DE2E6>6?Ek^2m 😕 H9:49 96 3=F?E=J 492C24E6C:K65 E96 E9C62E @7 4C:>:?2= 492C86D 2D D:>A=6 “AC6E6IED” E@ F?56C>:?6 E96 k2 9C67lQ9EEADi^^2A?6HD]4@>^2CE:4=6^7656C2=\C6D6CG6\A@H6==\ECF>A\:?56A6?56?46\d4a64`2bf54c242e2dhdcc7g3cd`b2cdQmu65’D :?56A6?56?46k^2m H96? :E 4@>6D E@ D6EE:?8 :?E6C6DE C2E6D]k^Am

kAm“%96 E9C62E @7 4C:>:?2= 492C86D 😀 2 4@?D6BF6?46 @7 E96 u656C2= #6D6CG6 D6EE:?8 :?E6C6DE C2E6D 32D65 @? @FC 36DE 2DD6DD>6?E @7 H92E H:== D6CG6 E96 AF3=:4[ C2E96C E92? 7@==@H:?8 E96 AC676C6?46D @7 E96 !C6D:56?E[Q !@H6== D2:5] “%9:D 😀 23@FE H96E96C E96 u65 H:== 36 23=6 E@ 4@?E:?F6 E@ D6E :?E6C6DE C2E6D 32D65 @? 6G:56?46 2?5 64@?@>:4 4@?5:E:@?D — @C H96E96C :?DE625 >@?6E2CJ A@=:4J H:== 36 5:C64E65 3J A@=:E:42= AC6DDFC6 @C :?E:>:52E:@?]”k^Am

kAmxEVD 2 D92CA 56A2CEFC6 7C@> E96 u65VD F?56CDE2E65 C6DA@?D6 E@ %CF>A E9:D J62C] %96 46?EC2= 32?< 92D 2EE6>AE65 E@ A=242E6 E96 25>:?:DEC2E:@? 3J 5:2=:?8 324< D@>6 A@=:4:6D[ DF49 2D 677@CED E@ 4@?D:56C E96 :>A24E @7 4=:>2E6 492?86 @? E96 32?<:?8 DJDE6>[ E92E E96 25>:?:DEC2E:@? 4=62C=J @AA@D65]k^Am

kAm%96 C6?6H65 2EE242?E 32EE=6 36EH66? %CF>A 2?5 E96 492:C 96 2AA@:?E65 😕 a_`f] %96 DF3A@6?2D H:== C6?6H 762CD E92E E96 u65VD :?56A6?56?46 7C@> 52J\E@\52J A@=:E:4D H:== 36 4@>AC@>:D65[ H9:49 4@F=5 F?56C>:?6 8=@32= :?G6DE@CDV 4@?7:56?46 😕 &]$] %C62DFCJ D64FC:E:6D]k^Am

kAm“(6 6IA64E E96 5@==2C[ 3@?5D 2?5 DE@46C:42 EC256 D:>:=2C E@ E92E 😕 pAC:= =2DE J62C 2E E96 A62< @7 E96 E2C:77 D9@4< 2?5 62C=:6C E9C62E E@ !@H6==’D A@D:E:@? 2D u65 492:C[” zC:D9?2 vF92[ 2? 2?2=JDE 2E tG6C4@C6 x$x[ 2? :?G6DE>6?E 32?<[ HC@E6 😕 2 ?@E6 E@ 4=:6?ED]k^Am

kAm“(6 2C6 DEF??65 3J E9:D 566A=J 5:DEFC3:?8 56G6=@A>6?E H9:49 42>6 @FE @7 E96 3=F6 27E6C 2 A6C:@5 😕 H9:49 E6?D:@?D 36EH66? %CF>A 2?5 E96 u65 D66>65 E@ 36 4@?E2:?65[” vF92 25565]k^Am

kAmx? 2 3C:67 :?E6CG:6H H:E9 }qr }6HD $F?52J[ %CF>A :?D:DE65 96 5:5?’E @H 23@FE E96 :?G6DE:82E:@? :?E@ !@H6==] (96? 2D<65 :7 E96 :?G6DE:82E:@? 😀 :?E6?565 E@ AC6DDFC6 !@H6== @? C2E6D[ %CF>A D2:5[ “}@] x H@F=5?’E 6G6? E9:?< @7 5@:?8 :E E92E H2J]”k^Am

kAm!@H6==VD E6C> 2D 492:C 6?5D 😕 |2J[ 2?5 %CF>A 25>:?:DEC2E:@? @77:4:2=D 92G6 D:8?2=65 E92E 96 4@F=5 ?2>6 2 A@E6?E:2= C6A=246>6?E E9:D >@?E9] %CF>A 92D 2=D@ D@F89E E@ 7:C6 u65 8@G6C?@C {:D2 r@@<[ 2? F?AC64656?E65 DE6A[ E9@F89 D96 92D DF65 E@ <66A 96C ;@3 2?5 k2 9C67lQ9EEADi^^2A?6HD]4@>^2CE:4=6^7656C2=\C6D6CG6\8@G6C?@C\=:D2\4@@<\ECF>A\7:C:?8\ed`747_ebf47`ch_`335ddh57__4gde3Qm4@FCED 92G6 CF=65 D96 42?k^2m C6>2:? 😕 96C D62E H9:=6 E96 42D6 A=2JD @FE] %96 $FAC6>6 r@FCE H:== 962C 2C8F>6?ED 😕 E92E 42D6 y2?] a`]k^Am

kAmpE E96 $6?2E6 q2?<:?8 r@>>:EE66 962C:?8 😕 yF?6[ r92:C>2? %:> $4@EE[ 2 #6AF3=:42? 7C@> $@FE9 r2C@=:?2[ D2:5 E96 u65VD 3F:=5:?8 C6?@G2E:@? :?4=F565 “C@@7E@A E6CC246D[ 4FDE@> 6=6G2E@CD E92E @A6? :?E@ ‘x! 5:?:?8 C@@>D[ k2 9C67lQ9EEADi^^2A?6HD]4@>^2CE:4=6^A@H6==\ECF>A\7656C2=\C6D6CG6\`e2b2fg323af7cc6_dg5ehgah2g5472hQmH9:E6 >2C3=6k^2m 7:?:D96D[ 2?5 6G6? 2 AC:G2E6 2CE 4@==64E:@?]”k^Am

kAm!@H6== 5:DAFE65 E9@D6 56E2:=D 😕 9:D E6DE:>@?J[ D2J:?8 “E96C6’D ?@ ?6H >2C3=6] ]]] E96C6 2C6 ?@ DA64:2= 6=6G2E@CDQ 2?5 25565 E92E D@>6 @7 E96 4@?EC@G6CD:2= :E6>D 2C6 “?@E 😕 E96 4FCC6?E A=2?]” x? yF=J[ #FDD6== ‘@F89E[ 5:C64E@C @7 E96 ~77:46 @7 |2?286>6?E 2?5 qF586E[ D2:5 k2 9C67lQ9EEADi^^I]4@>^CFDDG@F89E^DE2EFD^`hcbbeaffcc`eggbh_gQm:? 2 =6EE6C E@ !@H6==k^2m E92E 9:D E6DE:>@?J 23@FE 492?86D E@ E96 3F:=5:?8 A=2?D “C2:D6D D6C:@FD BF6DE:@?D 23@FE E96 AC@;64EVD 4@>A=:2?46” H:E9 AC6G:@FD A=2?D 2AAC@G65 3J 2 A=2??:?8 4@>>:DD:@?]k^Am

kAm$E:==[ =2E6C E92E >@?E9[ %CF>A k2 9C67lQ9EEADi^^2A?6HD]4@>^2CE:4=6^7656C2=\C6D6CG6\3F:=5:?8\ECF>A\C6?@G2E:@?\fc757df6c54ge26`e65efc27d3e_6fc7QmG:D:E65 E96 3F:=5:?8k^2m D:E6 2?5[ H9:=6 DE2?5:?8 ?6IE E@ !@H6==[ k2 9C67lQ9EEADi^^2A?6HD]4@>^2CE:4=6^ECF>A\7656C2=\C6D6CG6\;6C@>6\A@H6==\`cd3_`gh2g4f24223h7473_hf54bfe4hQm@G6CDE2E65 E96 4@DEk^2m @7 E96 C6?@G2E:@?] {2E6C E92E 52J[ %CF>A[ DA62<:?8 E@ C6A@CE6CD[ 5@H?A=2J65 2?J 4@?46C?D H:E9 E96 C6?@G2E:@?] w6 D2:5[ “E96J 92G6 E@ 86E :E 5@?6” 2?5 25565[ “{@@<[ E96C6’D 2=H2JD |@?52J >@C?:?8 BF2CE6C324 86E :E 7:?:D965]”k^Am

kAm(96? 2D<65 :7 :E H2D 2 7:C:?8 @776?D6[ %CF>A D2:5[ “x 5@?’E H2?E E@ AFE E92E 😕 E9:D 42E68@CJ]”k^Am

kAm%96 yFDE:46 s6A2CE>6?E 😕 2 DE2E6>6?E $F?52J D2:5 :E 42?’E 4@>>6?E @? 2?J A2CE:4F=2C 42D6[ 3FE 25565 E92E pEE@C?6J v6?6C2= !2> q@?5: “92D :?DECF4E65 96C &$ pEE@C?6JD E@ AC:@C:E:K6 :?G6DE:82E:?8 2?J 23FD6 @7 E2I A2J6C 5@==2CD]”k^Am

kAm%:>@E9J {2F6C[ 2 DA@<6DA6CD@? 7@C &]$] pEE@C?6J y62?:?6 !:CC@’D @77:46[ D2:5 E96J 5@?’E 4@>>6?E @? @?8@:?8 :?G6DE:82E:@?D]k^Am

kAm(:E9 E96 DF3A@6?2D[ !@H6== 364@>6D E96 =2E6DE A6C46:G65 25G6CD2CJ @7 E96 AC6D:56?E E@ 7246 2 4C:>:?2= :?G6DE:82E:@? 3J E96 %CF>A 25>:?:DEC2E:@?VD yFDE:46 s6A2CE>6?E] %CF>A 9:>D6=7 92D FC865 AC@D64FE:@?D @7 9:D A@=:E:42= @AA@?6?ED[ @3=:E6C2E:?8 :?DE:EFE:@?2= 8F2C5C2:=D 7@C 2 yFDE:46 s6A2CE>6?E E92E 7@C 86?6C2E:@?D 92D E2<6? 42C6 E@ >2<6 :?G6DE:82E:G6 2?5 AC@D64FE@C:2= 564:D:@?D :?56A6?56?E @7 E96 (9:E6 w@FD6]k^Am

kAm%96 A@E6?E:2= :?5:4E>6?E 92D 2=C625J 5C2H? 4@?46C? 7C@> @?6 #6AF3=:42? D6?2E@C[ H9@ D2:5 96’== @AA@D6 2?J 7FEFC6 ?@>:?66 E@ E96 46?EC2= 32?<[ :?4=F5:?8 2?J C6A=246>6?E 7@C !@H6==[ F?E:= “E9:D =682= >2EE6C 😀 7F==J C6D@=G65]”k^Am

kAm“x7 E96C6 H6C6 2?J C6>2:?:?8 5@F3E H96E96C 25G:D6CD H:E9:? E96 %CF>A p5>:?:DEC2E:@? 2C6 24E:G6=J AFD9:?8 E@ 6?5 E96 :?56A6?56?46 @7 E96 u656C2= #6D6CG6[ E96C6 D9@F=5 ?@H 36 ?@?6[” D2:5 }@CE9 r2C@=:?2 $6?] %9@> %:==:D[ H9@ D:ED @? E96 q2?<:?8 r@>>:EE66[ H9:49 @G6CD66D u65 ?@>:?2E:@?D] “xE 😀 ?@H E96 :?56A6?56?46 2?5 4C65:3:=:EJ @7 E96 s6A2CE>6?E @7 yFDE:46 E92E 2C6 😕 BF6DE:@?]”k^Am

k9C ^m

kAmpDD@4:2E65 !C6DD HC:E6CD $6F?8 |:? z:>[ tC:4 %F4<6C[ |:4926= zF?K6=>2?[ 2?5 p=2??2 sFC<:? #:496C 4@?EC:3FE65 E@ E9:D C6A@CE]k^Am

Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.