U.S. Federal Reserve Chairman Jerome Powell confirmed the Trump administration's criminal investigation in a video statement. (Al Drago/AFP/Getty Images)
The probe focuses on whether Powell was truthful during congressional testimony about the project to overhaul the Fed's two main buildings on the National Mall. No charges have been filed, and Powell has denied any wrongdoing.
Powell, widely viewed as one of the most crisis-tested Federal Reserve chairs in modern U.S. history, built his career as a lawyer and investment banker in New York before entering public service in the administration of President George H.W. Bush. He joined the Federal Reserve’s Board of Governors in 2012 and was tapped to lead the central bank in 2017.
Now, a criminal investigation may represent the biggest test of Powell’s leadership, unfolding as Trump weighs his choice for the next Fed chair with Powell’s term set to expire in May.
White House National Economic Council Director Kevin Hassett has been a loyal supporter of Trump's economic agenda. (Andrew Harnik/Getty Images)
Kevin Hassett is Trump’s top economic advisor and a loyal defender of the administration’s policies. He currently serves as director of the White House’s National Economic Council, and held two senior roles during Trump’s first term and advised the president on economic policy during the 2024 campaign.
POWELL REVEALS WHAT IT WOULD TAKE TO STEP DOWN FROM THE FED AS PRESSURE MOUNTS
Meanwhile, Kevin Warsh, a former Morgan Stanley banker, has emerged as a vocal critic of current Fed leadership, sharpening his attacks as he positioned himself as a potential replacement for Powell. He became the youngest person to serve on the Federal Reserve Board of Governors in 2006.
Kevin Warsh, former governor of the U.S. Federal Reserve, was long considered for Treasury Secretary before Trump ultimately tapped Scott Bessent. (Tierney L. Cross/Bloomberg via Getty Images)
Federal Reserve Gov. Christopher Waller has repeatedly called for rate cuts, a move that aligns, in part, with Trump's demands. Of the candidates, he is considered the veteran academic of the group. He has also reiterated the importance of maintaining an independent Federal Reserve.
And BlackRock Global Fixed Income Chief Investment Officer Rick Rieder is the last candidate to have an interview with Trump before the president makes his decision. Treasury Secretary Scott Bessent, who did pre-interviews with all the candidates, said Trump is expected to announce his decision by the end of January.
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Meanwhile, some lawmakers on Capitol Hill said they would block the confirmation of Trump's Federal Reserve nominee until the legal matter is resolved.
The White House referred questions to the Department of Justice. The Department of Justice did not immediately respond to Fox News Digital's request for comment.
As the investigation unfolds and a decision on the next Fed chair approaches, the episode underscores the growing political pressure surrounding a role long viewed as insulated from the White House.
Amanda covers the intersection of business and politics for Fox News Digital.
https://www.foxnews.com/politics/trump-criminal-probe-fed-chair-powell-marks-unprecedented-escalation-warning-his-successor