Wall Street Breakfast Fed Chair Powell faces criminal investigation
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Jan 12, 2026 Federal prosecutors have launched a criminal investigation into Fed Chair Jerome Powell, focusing on alleged misleading of Congress concerning renovations. In other news, Allegiant is set to acquire Sun Country for $1.5 billion. Meta has taken action by removing over 550,000 accounts in Australia to comply with new regulations for users under 16. Plus, there’s a buzz in the market with gold and silver prices spiking following the DOJ's actions, while credit card firms are reacting to political statements.
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Fed Chair Under Criminal Probe
- The U.S. Attorney's Office opened a criminal probe into Fed Chair Jerome Powell over the Fed headquarters renovation and his congressional statements.
- The subpoenas coincide with political criticism from President Trump and raise legal pressure on Powell amid rate disputes.
Costly Renovation Details Emerge
- The renovation began in 2022 and is now about $700 million over budget, including previously planned luxury features.
- Powell denied at a June hearing that many of those features remain in the current proposal.
Political Friction Around Subpoenas
- Powell said the subpoenas are politically motivated and tied to criticism over not cutting interest rates for President Trump.
- Trump denies involvement and insists he knows nothing about the investigation.