'Unprecedented attack': Former Fed chairs call out Trump-era probe into Powell

Business Jan 12, 2026

Every living former US Fed chair has spoken out against a Justice Department investigation targeting current Chair Jerome Powell.
The probe is focused on Powell's Senate testimony last year about a $2.5 billion renovation at the Fed's DC headquarters, which has faced allegations of overspending and cost overruns.

Why does it matter?

Powell says the investigation is just an excuse to push him into lowering interest rates, especially as former President Trump has spent months criticizing his policies.
While Trump denies involvement, he still slammed Powell's decisions in a recent interview.
The fallout has already rattled markets and sparked political backlash—some senators are even threatening to block future Fed appointments until this gets sorted out.