Screens broadcasts a press conference by U.S. Federal Reserve Chair Jerome Powell following the Fed rate cut announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., Oct. 29, 2025.
Brendan McDermid | Reuters
Opposition to the Trump administration’s criminal investigation of Federal Reserve Chair Jerome Powell is gaining momentum.
On Sunday evening stateside, Powell said federal prosecutors are investigating him over the central bank’s $2.5 billion renovation of its headquarters, and his related testimony before Congress.
Powell suggested the probe reflects President Donald Trump’s frustration with the Fed’s refusal to lower rates as aggressively as he has demanded.
The investigation quickly triggered a wave of bipartisan criticism.
“The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence,” a statement said Monday. It was signed by former Fed chairs, economists and other senior officials who served in previous Democratic and Republican administrations.
Some Republican lawmakers also pushed back, with North Carolina Republican Sen. Thom Tillis saying he would block any Trump appointees to the Fed.
Lloyd Blankfein, the former CEO of Goldman Sachs, went further, describing the criminal investigation as “an attempt at murder-suicide” of multiple U.S. institutions.
Despite the uproar, U.S. markets climbed, with the S&P 500 and Dow Jones Industrial Average even closing at new highs.
Former Fed Chair and Treasury Secretary Janet Yellen said she was “surprised the market isn’t more concerned.” It’s a situation that is “extremely chilling,” she added.
But Jim Lebenthal, chief markets strategist at Cerity Partners, told CNBC that there’s just “too many good things” in the short term for investors to focus on, such as a healthy economy and earnings.
That does not mean the path ahead for markets is clear. Trump announced Monday that any country doing business with Iran would face a 25% tariff. If the pace of developments in recent weeks is any indication, investors may need to brace for more obstacles in the coming days.
— CNBC’s Dan Mangan, Jeff Cox and Yun Li contributed to this report
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