Federal Reserve Chair Jerome Powell said the Justice Department has served the Fed with grand jury subpoenas that could potentially lead to criminal charges. According to Powell, the subpoenas are tied to his June testimony in Congress about renovations to the Fed’s headquarters. However, he argued that this move should be seen in the broader context of ongoing pressure from the Trump administration over monetary policy. In a statement released Sunday, Powell said the threat of criminal charges comes from the Fed setting interest rates based on economic data rather than political preferences. He framed the issue as a question of whether the central bank can continue to operate independently or if policy decisions will be influenced by political intimidation. Former President Trump, speaking to NBC News, said he had no knowledge of the investigation but criticized Powell’s performance at the Fed. Markets reacted quickly to the news: the U.S. dollar weakened against major currencies, gold hit a record high, and S&P 500 futures slipped about 0.3%. This development marks a significant escalation in the long-running conflict between Trump and the Fed. Trump has frequently pushed for deeper rate cuts, arguing they would help with housing affordability and lower government borrowing costs. Powell’s comments suggest the Fed sees these legal actions as a potential threat to its independence rather than just a routine investigation.