DOJ Launches Criminal Probe into Fed Chair Jerome Powell
Washington D.C., USA – January 13, 2026
Washington D.C., USA: DOJ Launches Criminal Probe into Fed Chair Jerome Powell – In an unprecedented move that has sent shockwaves through the global financial architecture, the U.S. Department of Justice (DOJ) has officially launched a criminal investigation into Federal Reserve Chair Jerome Powell.
This development marks the most severe confrontation between the executive branch and the central bank in American history.
The investigation, which ostensibly focuses on the costs and management of the multi-year renovation of the Federal Reserve’s headquarters, is viewed by many as a strategic “decapitation” of the Fed’s independence as the Trump administration seeks to exert direct control over monetary policy.
The Architecture of an Investigation
The core of the DOJ’s case rests on the “Eccles Building” renovation project, a multi-billion-dollar initiative to modernize the Fed’s historic headquarters in Washington D.C. Federal prosecutors are scrutinizing Powell’s prior testimony to Congress regarding the ballooning costs and the awarding of specific contracts.
However, the timing of the probe—coinciding with the Fed’s refusal to aggressively cut interest rates to zero—has led constitutional scholars to label the investigation a “pretextual prosecution.”
The DOJ has issued a series of subpoenas for internal Fed communications, looking for evidence of “misleading statements to federal investigators” and “financial mismanagement.”
For the first time in the history of the Republic, the personal legal jeopardy of a Fed Chair is being used as a lever in macroeconomic policy.
Castle Journal’s exclusive sources within the Department of Justice suggest that the investigation is being spearheaded by a newly formed “Executive Oversight Unit” designed specifically to target officials who block the administration’s economic agenda.
Global Market Volatility and the Dollar’s Crisis
The reaction in global markets was immediate and violent. Within minutes of the news breaking, the S&P 500 futures dropped by 2.4%, and the U.S. Dollar Index (DXY) saw its sharpest one-day decline since the 2008 financial crisis.
International investors view the independence of the Federal Reserve as the “bedrock of global trust.”
By casting a criminal shadow over the Chair, the administration has signaled that the era of predictable, data-driven monetary policy may be over.
In London, Tokyo, and Frankfurt, central bankers are holding emergency meetings to discuss the potential for a “de-dollarization” surge.
If the Federal Reserve is perceived as an arm of the White House, the dollar’s status as the world’s primary reserve currency could be permanently compromised.
Economists warn that this probe could lead to a “risk premium” being added to all U.S. assets, effectively raising borrowing costs for the government and private citizens alike.
The Independence of Leadership Governance
Jerome Powell, in his public statements, has attempted to maintain a stance of professional detachment—the Transcendent Ego—focusing on the objective data of the economy rather than the personal attacks of the political sphere.
However, the weight of a criminal probe forces the “self” back into the equation, creating a conflict between personal survival and institutional duty.
The “secretive reports” reaching our editorial team suggest that Powell has no intention of resigning.
He is reportedly preparing a defense that will center on the “Administrative Procedure Act” and the statutory protections that prevent a President from firing a Fed Governor without “cause.”
By framing the investigation as a criminal matter, the DOJ is attempting to create that “cause” through the back door.
A Precedent for the World
This investigation is not just about one man or one building; it is about the governance of the world’s leading economy.
If the DOJ succeeds in removing Powell or forcing him to align with political mandates, the model of independent central banking—a hallmark of Western democracy for a century—will be shattered.
Key Headline Points:
• Criminal Allegations: DOJ focuses on headquarters renovation costs and congressional testimony.
• Political Context: The probe follows months of public pressure from the White House regarding interest rates.
• Market Shock: Global indices and the U.S. dollar face massive sell-offs on news of the investigation.
• Institutional Crisis: The probe threatens the 113-year independence of the Federal Reserve.
————-
