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"Americans must stand with Powell": Rep. Khanna slams DoJ probe
The congressman warned that the DOJ probe threatens Federal Reserve independence.
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Anushka Pathak - Mon, 12, Jan 2026
- 16:00 EST
- 23
Congressman Ro Khanna / Courtesy: khanna.house.gov
Rep. Ro Khanna has urged Americans to back Federal Reserve Chair Jerome Powell, who is the latest to clash with President Donald Trump and faces a criminal investigation by the U.S. Department of Justice (DoJ)
In a video posted on X on Jan. 12, Khanna said political pressure on the Federal Reserve risked undermining the rule of law. "All Americans must stand with Jerome Powell and the independence of the Fed. The Trump administration has crossed the Rubicon," he said.
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"You can't just threaten with criminal investigation an independent agency head like Jerome Powell who's doing his job,” he added.
The only reason Jerome Powell isn't lowering interest rates is because of Trump's irrational tariff policy.
— Ro Khanna (@RoKhanna) January 12, 2026
What Trump is doing threatens the very economic fabric and prosperity of this country. pic.twitter.com/gwUYIPtPCP
The DOJ launched a criminal investigation against Powell over his June testimony before the Senate Banking Committee concerning a US$2.5 billion renovation of the Fed’s headquarters. The investigation is seen as an escalation of the president’s attacks on the bank after it decided against lowering interest rates.
Khanna linked the Federal Reserve’s cautious approach to interest rate cuts to tariff policies under President Donald Trump. "By the way, the only reason he isn't lowering interest rates is because of Trump's irrational economic policy," Khanna said.
"It is Trump blanket tariffs that have forced Jerome Powell's hand. He would've lowered interest rates a month ago if Trump didn't jack up the price on food and rent and housing with irrational tariffs," the Democrat added.
Khanna warned that continued political interference could have wider economic consequences. "If we don't have rule of law, if we do not have independent agencies, if we don't have an independent trusted monetary policy, then we will not remain the place where people want to do business and the economic power of the world."
Meanwhile, Powell has described the investigation as a “pretext.” "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president," he said.
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
He added, "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether, instead, monetary policy will be directed by political pressure or intimidation."
Trump has repeatedly called for deeper interest rate cuts and criticized Powell’s leadership, including a recent 25 basis point reduction he said was insufficient. While Trump has denied directing the DOJ action, he has continued to express dissatisfaction with the Federal Reserve’s policies.
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