type: timeline_event
The Federal Reserve continued to refuse compliance with grand jury subpoenas served by the Department of Justice on January 9, 2026, as Federal Reserve Chair Jerome Powell declined to provide details at his January 28 press conference following the FOMC meeting. When questioned by reporters about whether the Federal Reserve had responded to the subpoenas, Powell stated only, "I have nothing for you on that today," referring media back to his earlier statement characterizing the investigation as political intimidation.
The criminal investigation, led by U.S. Attorney for the District of Columbia Jeanine Pirro, ostensibly focuses on Powell's June 2025 testimony to Congress about the Federal Reserve's $2.5 billion headquarters renovation. Powell had disputed claims by OMB chair Russell Vought that the renovation included "special elevators," water features, or rooftop gardens. However, Powell characterized the DOJ action as fundamentally about "whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation."
The investigation marks the first time in the Federal Reserve's 113-year history that sitting leadership has faced potential criminal prosecution from a presidential administration. At the January 28 FOMC meeting, the Federal Reserve kept its benchmark rate at 3.5%–3.75% despite Trump's public pressure for cuts, with two members—including Trump appointee Stephen Miran—voting to lower rates. Powell's refusal to comply with the subpoenas and his public framing of the investigation as an attack on central bank independence represented an extraordinary act of institutional resistance.
Senator Thom Tillis, a North Carolina Republican on the Banking Committee, stated he would oppose any nominee by Trump to replace Powell and any Fed board nominee "until this legal matter is fully resolved." Powell's term as chair ends in May 2026, though his term as a governor runs through January 2028. Trump nominated Kevin Warsh to replace Powell on January 30, 2026, two days after Powell's press conference refusal to comply with the subpoenas. The Federal Reserve's non-compliance with DOJ grand jury subpoenas represents an unprecedented institutional standoff between the central bank and the executive branch, with the independence of monetary policy at stake.