Trump Administration Threatens Fed Chair as Battle Over Central Bank Independence Escalates. The Trump administration has threatened a criminal indictment against Federal Reserve Chair Jerome Powell, intensifying a long-running clash over control of U.S. monetary policy. Powell says the Justice Department has issued grand jury subpoenas tied to his congressional testimony last summer about a Federal Reserve building renovation — but he insists the case is a pretext. According to Powell, the real motive is pressure on the Fed to cut interest rates in line with President Trump's demands. The move sparked immediate backlash, including from Republican Senator Thom Tillis who warned the threat undermines the Justice Department's credibility and vowed to block future Fed nominees until the matter is resolved. Trump denies knowing about the investigation, while the Justice Department says it is prioritising probes into misuse of taxpayer funds. Markets reacted cautiously, but economists warn this marks a dangerous moment — raising fresh concerns about political interference in the independence of America's central bank.