U.S. Federal Reserve Chair Jerome Powell confirmed on January 12, 2026, that the Department of Justice has subpoenaed the central bank, characterizing the action as a continuation of political pressure tactics initiated during former President Donald Trump's administration. The development comes amid heightened scrutiny of central bank independence during election years.
While specific details of the subpoena remain confidential, sources familiar with the matter suggest it relates to historical monetary policy decisions made during the final year of Trump's presidency in 2020. Powell emphasized the Fed's commitment to transparency but warned against "politicization of financial governance institutions."
Market analysts express concern about potential ripple effects across Asian economies. "Any perceived instability in U.S. monetary policy leadership could impact dollar-denominated trade flows," noted Singapore-based economist Dr. Li Wei. The MSCI Asia Pacific Index showed moderate volatility following the announcement.
The investigation raises questions about cross-border financial coordination, particularly affecting APEC members engaged in dollar-dependent trade. Observers warn prolonged legal proceedings might complicate the Fed's ability to address current inflationary pressures affecting global supply chains.
