Justice Department weaponized in bid to seize control of America’s money

In a move that has sent shockwaves through the foundations of American democracy and the global financial system, federal prosecutors have launched an unprecedented criminal investigation into Jerome Powell, the chairman of the Federal Reserve.

The trumped up investigation, revealed by Powell himself in a stark and historic video statement, is widely seen not as a legitimate inquiry but as the culmination of a naked political campaign by President Donald Trump to intimidate the central bank and seize control of the nation’s money supply.

The Justice Department served the Fed with grand jury subpoenas on Friday, threatening a criminal indictment related to Powell’s testimony last June about the multibillion-dollar renovation of the central bank’s headquarters.

In his response, Powell discarded the Fed’s traditionally restrained tone and named the threat for what it is.

“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” Powell said.

“Those are pretexts” Powell said. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”

Trump, a notorious liar, denied any knowledge of the investigation while taking the opportunity to lambast Powell’s performance.

“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said.

His administration, however, has been engaged in a year-long pressure campaign to force deeper cuts to interest rates, a move economists warn could overheat the economy and destabilize the dollar.

Justice Department officials have targeted other Trump adversaries, including former national security adviser John Bolton, New York Attorney General Leticia James, and James Comey, who Trump fired as FBI director to cover up Russian meddling in the 2016 presidential election.

The investigation represents a dangerous escalation in a broader war on the Fed’s independence.

The administration has already installed a close ally, Stephen Miran, on the Fed’s board and has aggressively sought to remove Lisa Cook, a Biden appointee, over unsubstantiated allegations of mortgage fraud.

Cook is suing to keep her seat, and the Supreme Court is set to hear her case.

This pattern reveals a concerted effort to purge the institution of perceived independence and recalibrate its leadership toward political obedience.

The reaction from some members of Congress was immediate and alarmed.

Republican Sen. Thom Tillis, who sits on the Senate Banking Committee, declared he would “oppose the confirmation of any nominee for the Fed — including the upcoming Fed chair vacancy — until this legal matter is fully resolved.”

He added, “If there were any remaining doubt whether advisers within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none.”

For more than a century, the Federal Reserve has been deliberately insulated from the political fray, its independence considered sacrosanct for economic stability.

This independence ensures that decisions on interest rates — which affect everything from mortgage payments to the value of the global reserve currency — are made based on economic data, not the electoral calendar or a president’s whim.

History offers grim lessons on the consequences of politicized monetary policy, from the inflationary spirals of the 1970s to economic collapses abroad.

The financial world reacted with stunned alarm. Krishna Guha, an analyst at Evercore ISI, called it a “deeply disturbing development” and warned that “the administration and the central bank are now in open war,” anticipating severe market turmoil.

Leading the chorus of outrage from the political left was progressive Democrat Lisa McCormick, who issued a blistering condemnation.

“This is a fascist ploy, pure and simple,” McCormick said. “It is the weaponization of the Justice Department to bully an independent institution into surrendering control of America’s wallet to a president who thinks the law is a tool for his own use,”

“Jerome Powell is not being investigated for a crime;,” McCormick said. “He is being investigated for the crime of doing his job without fear or favor.”

McCormick praised Powell’s defiance.

“In standing up to this intimidation, Jerome Powell is defending more than his own reputation,” McCormick said. “He is defending the very pillars of our economic republic.”

“Telling the president that the Federal Reserve is not his piggy bank to smash open when he wants a political sugar high, is very brave,” McCormick said. “For that act of courage, he has the gratitude of every American who believes in the rule of law.”

Powell, whose term as chair ends in May, vowed to stand firm.

“Public service sometimes requires standing firm in the face of threats,” he said. “I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”

The question now is whether the institution he leads can survive the assault with its independence — and the nation’s economic stability — intact.