Concerns Over Central Bank Independence

The Federal Reserve, the central bank of the United States, is facing a grand jury investigation over the testimony of its Chair, Jerome Powell. The investigation was sparked by a referral from Representative Anna Paulina Luna of Florida, who accused Powell of perjury in July 2025.

Background of the Investigation

The investigation is related to Powell’s testimony before the Senate Banking Committee last summer, which concerned a multi-year project to renovate historic Federal Reserve office buildings. Powell stated that he has “deep respect for the rule of law and for accountability in our democracy” and that “no one—certainly not the chair of the Federal Reserve—is above the law.” He believes that the investigation is a consequence of the Federal Reserve setting interest rates based on its best assessment of what will serve the public, rather than following the preferences of the president.

Reaction from Senators

Senator Thom Tillis of North Carolina has expressed his opposition to the confirmation of any nominee for the Fed, including the upcoming Fed Chair vacancy, until the legal matter is fully resolved. He believes that President Trump’s administration is “actively pushing to end the independence of the Federal Reserve.” On the other hand, Senator Lisa Murkowski of Alaska has called on Congress to conduct an investigation into the Justice Department’s probe, stating that project overruns, such as the one experienced by the Federal Reserve, “are not unusual.”

Justice Department’s Response

A Justice Department spokesperson explained that the Attorney General has instructed her U.S. Attorneys to prioritize investigating any abuse of taxpayer dollars. House Speaker Mike Johnson has also weighed in on the issue, stating that the Justice Department is not being weaponized and that they will let the investigation play out.

Prayers and Support

As the investigation continues, many are calling for prayer and support for those involved. This includes prayers for Attorney General Bondi as she oversees the investigation, for Chairman Powell as he presides over the Federal Reserve, and for the senators as they express concerns over the purpose of the Justice Department investigation.

Conclusion

The investigation into the Federal Reserve and its Chair, Jerome Powell, has sparked concerns over the independence of the central bank. As the investigation continues, it is essential to consider the potential implications of the outcome and the importance of maintaining the independence of the Federal Reserve. The stability of the markets and the broader economy depends on it. Sources close to the matter have reported that the investigation is ongoing, and a resolution is expected in the coming months.