The DOJ served the Fed with a subpoena and threatened Powell with a criminal indictment related to the Fed's expensive renovations.
Powell, rather than releasing the minimal version of a statement that merely disagreed with the accusation, instead released a statement and video that pretty much went scorched earth, saying this isn't really about the renovations and is instead about the Fed's independent control of interest rates.
Historically speaking, this is the biggest direct clash between the Fed and the Executive Branch since the 1940s/1950s.
https://www.federalreserve.gov/newsevents/speech/powell20260111a.htm
They are tearing up the 1951 Treasury-Fed Accord live on TV.
Truman tried to force the Fed to peg rates to fund the war.
The current admin is using the DOJ to force the Fed to fund the debt.
The "Renovation" is just the pretext. The goal is Fiscal Dominance.
They can't fire him for the policy (High Rates), so they are trying to indict him on the technicality (Renovations).
The message to the next Chair is clear: "Monetize the debt or face the DOJ."
Independence is officially dead.
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