Federal Reserve

Organization
Last Verified: Jan 18, 2026
  • Jerome Powell faces a Department of Justice criminal investigation as of January 2026.
  • Federal Reserve officials emphasize institutional independence despite ongoing criticism from the executive branch.
  • Inflation expectations rose following the release of November CPI data in early January.

Jerome Powell serves as the Chair of the Federal Reserve, which functions as the central banking system of the United States. He directs monetary policy from the Eccles Building in Washington, D.C. He manages the Board of Governors.

The Department of Justice initiated a criminal investigation into Powell on January 12, 2026, amid significant political pressure regarding the direction of national monetary policy. This probe continues. Investigators have not disclosed the specific nature of the allegations.

President Donald Trump criticized Powell on January 14, 2026, following the announcement of the federal investigation into the Chair's conduct. This criticism followed months of public disagreement. The executive branch maintains oversight of the institution.

United States inflation expectations increased following the January 11, 2026, release of consumer price index data showing persistent upward pressure on essential goods. Powell held rates steady. This decision drew further scrutiny.

  • Jamie Dimon rejected a potential nomination for the Chair role on January 16, 2026.
  • Trump expressed hesitation regarding the nomination of Kevin Hassett on January 17, 2026.
  • The Supreme Court heard cases involving the topic on January 12, 2026.
  • Federal Reserve officials emphasized independence as interest rate holds increased on January 15, 2026.

The topic began operations on December 23, 1913, after Robert Latham Owen secured the passage of the Federal Reserve Act to stabilize the American banking sector. It manages liquidity. The system provides a flexible currency.

President Donald Trump stated on January 15, 2026, that he currently maintains no plans to remove Powell from his leadership position. This statement followed tension. The legal status of the Chair remains a subject of public debate.

Former Federal Reserve chairs issued a joint statement on January 13, 2026, to formally condemn the criminal investigation into Powell. They defended the institution. The Department of Justice has not released specific charges.

Sources: News reports (January 11–18, 2026); Wikidata.

The Numbers

At a Glance

Current Role
Central Banking System of the United States
Primary Organization
Federal Reserve System
Nationality
United States
Education
Established by the Federal Reserve Act

Data via Wikidata

In the News

Current Context

  • The Department of Justice opened a criminal investigation into Jerome Powell on January 12, 2026.
  • Jamie Dimon declined the role of Federal Reserve Chair on January 16, 2026.
  • Former Federal Reserve Chairs formally condemned the DOJ investigation on January 13, 2026.

The Department of Justice initiated a criminal investigation into Federal Reserve Chair Jerome Powell on January 12, 2026, following a period of heightened political scrutiny.

This probe continues.

Donald Trump criticized Powell on January 14, 2026, in the wake of the investigation's announcement. Despite this criticism, the President stated on January 15, 2026, that he currently has no plans to remove Powell from his position.

The executive branch has expressed concerns about Federal Reserve policies.

Former Federal Reserve Chairs issued a collective statement on January 13, 2026, to condemn the criminal proceedings against the sitting Chair. They argued that such investigations undermine the necessary autonomy of the central bank.

Institutional independence is contested.

United States inflation expectations increased following the release of November CPI data on January 11, 2026. Federal Reserve officials responded on January 15, 2026, by holding interest rates and emphasizing their commitment to non-partisan decision-making.

Economic volatility persists.

JPMorgan CEO Jamie Dimon officially rejected a proposal to serve as Federal Reserve Chair on January 16, 2026. This refusal coincided with a statement from Trump expressing hesitation over the potential nomination of Kevin Hassett.

Questions about future Federal Reserve leadership have emerged.

On January 18, 2026, Trump threatened legal action against JPMorgan over allegations of debanking. This threat followed the Supreme Court hearing arguments on January 12, 2026, regarding cases that specifically involve the Federal Reserve.

Multiple legal proceedings involving the Federal Reserve are underway.

The topic was established on December 23, 1913, under the leadership of founder Robert Latham Owen. It operates from the Eccles Building and maintains a mandate to manage national monetary policy through independent action.

Historical foundations endure.

Sources: News reports (January 11–18, 2026).

Updated: Jan 18, 2026

Why It Matters

Impact & Significance

  • Preservation of the dual mandate regarding employment and price stability.
  • Maintenance of a decentralized structure through twelve regional banks.
  • Exercise of independent monetary authority separate from the executive branch.

The Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell on January 12, 2026. This inquiry marks a significant shift in the relationship between the executive branch and the central bank.

Donald Trump issued public criticisms of Powell on January 14, 2026, citing the ongoing investigation. He stated on January 15, 2026, that no plans exist to remove Powell.

Institutional leadership faced further complications when JPMorgan CEO Jamie Dimon rejected the Chair role on January 16, 2026. This refusal occurred as Trump expressed hesitation regarding the nomination of Kevin Hassett on January 17, 2026.

The Supreme Court heard arguments on January 12, 2026, concerning the legal authority of the central bank. These cases represent a pivotal moment for the regulatory framework established in the early 20th century.

Robert Latham Owen spearheaded the legislative effort to pass the Federal Reserve Act on December 23, 1913. President Woodrow Wilson signed the bill to address recurring banking panics.

The Eccles Building serves as the primary administrative hub in Washington, D.C. It houses the Board of Governors who oversee the operations of the twelve regional districts.

The institution maintains significant influence over global markets through several mechanisms:

  • Adjustment of the federal funds rate
  • Regulation of member bank reserve requirements
  • Management of the national money supply
  • Oversight of the Consumer Price Index impacts

Recent data from November indicates that inflation will likely rise in the coming months. Officials emphasized the necessity of institutional independence during an interest rate hold on January 15, 2026.

Former chairs issued a joint statement on January 13, 2026, to condemn the criminal investigation into the current leadership. They argued that political interference undermines the stability of the United States dollar.

Donald Trump threatened to sue JPMorgan on January 18, 2026, over allegations of debanking. This conflict highlights the tension between the executive and major financial institutions.

Financial analysts consistently rank the topic as the most influential economic body in the world. It holds a permanent seat on the Financial Stability Board and dictates the pace of international credit markets.

The organization received formal recognition for its role in stabilizing the global economy during the 2008 and 2020 financial crises. It remains the primary arbiter of American fiscal health.

Membership in international bodies further solidifies its standing:

  • Group of Ten
  • Bank for International Settlements
  • International Monetary Fund advisory committees

Sources: news reports

Career

Business History

  • Establishment via the 1913 Federal Reserve Act to provide financial stability following the Panic of...
  • Transition from a decentralized system to a centralized authority under the Board of Governors and...
  • Current leadership under Jerome Powell facing significant legal and executive scrutiny amid rising inflation in...

The Department of Justice initiated a criminal investigation into Federal Reserve Chair Jerome Powell on January 12, 2026. It continues. This development followed sustained public criticism from President Donald Trump regarding monetary policy.

Former Federal Reserve chairs issued a joint statement on January 13, 2026, to condemn the legal proceedings against the sitting Chair. They cited independence. Political interference reportedly threatens the stability of the national economy.

JPMorgan CEO Jamie Dimon officially rejected an offer to serve as the next Federal Reserve Chair on January 16, 2026. The search continues. This refusal occurred as Trump expressed hesitation over the potential nomination of Kevin Hassett on January 17, 2026.

The topic commenced its professional trajectory with the enactment of the Federal Reserve Act on December 23, 1913. The system launched. Robert Latham Owen and Carter Glass led the legislative effort to provide financial stability.

The legislation emerged from the National Monetary Commission report following the Panic of 1907. It passed. This framework established a decentralized central bank to balance private interests and government responsibility.

The Eccles Building in Washington, D.C., became the official headquarters for the Board of Governors in 1937. Power shifted. This transition marked a shift from regional autonomy to centralized federal control.

The Banking Act of 1935 fundamentally altered the topic's executive structure by creating the modern Federal Open Market Committee. Control became federal. This legislation granted the Board of Governors a permanent majority over regional reserve bank presidents.

Jerome Powell transitioned from the U.S. Treasury to the Board of Governors in 2012 before assuming the chairmanship in 2018. His influence grew. His leadership faced scrutiny during the inflation surge of the early 2020s.

The Supreme Court reviewed the topic's administrative authority on January 12, 2026, amid broader legal challenges to federal agency power. The court deliberated. This review coincided with allegations of "debanking" involving major lenders.

Current leadership responsibilities involve balancing price stability with maximum employment targets established by the committee. Officials held interest rates steady on January 15, 2026. Stability remains the goal.

The topic executes several core functions:

  • Setting the federal funds rate
  • Conducting open market operations
  • Implementing reserve requirements for banks
  • Monitoring systemic financial risks

President Trump stated on January 15, 2026, that he currently lacks plans to remove Powell despite the ongoing investigation. Tensions remain high. This statement followed a threat to sue JPMorgan over alleged discriminatory practices.

United States inflation expectations rose significantly following the release of the November CPI data on January 11, 2026. Prices climbed. Federal Reserve officials emphasized the necessity of institutional independence during a meeting on January 15, 2026.

The topic manages the national money supply while supervising member bank operations. The outlook remains uncertain. Officials must navigate political pressure while managing economic data.

The Federal Reserve Reform Act of 1977 explicitly defined the topic's dual mandate of maximum employment and stable prices. It succeeded. This law required the Board of Governors to consult with Congress semi-annually.

Sources: news reports.

Background

Origins

  • Founding by Robert Latham Owen via the Federal Reserve Act in 1913
  • Establishment of the Eccles Building as the permanent administrative headquarters
  • Legislative restructuring through the Banking Act of 1935 to ensure autonomy

The Department of Justice initiated a criminal investigation into Jerome Powell on January 12, 2026. This probe follows a period of intense public scrutiny regarding administrative decisions and internal protocols within the organization. Investigations continue.

Donald Trump criticized the leadership of the Federal Reserve on January 14, 2026, following the announcement of the inquiry. Despite these public statements, the President clarified on January 15, 2026, that no immediate plans exist to remove the current chair from his position. Leadership remains intact.

Former chairs issued a collective statement on January 13, 2026, to condemn the criminal investigation into the current leadership. They emphasized that political pressure threatens the fundamental independence required for effective monetary policy and economic management. Independence is vital.

The legislative origins of this topic trace back to the Federal Reserve Act, which received official approval on December 23, 1913. Robert Latham Owen served as a primary founder during this formative period of national financial restructuring. Founding occurred then.

Robert Latham Owen represented Oklahoma in the United States Senate and chaired the Committee on Banking and Currency. His collaboration with Carter Glass resulted in the framework that balanced private banking interests with public oversight. Balance was achieved.

The National Monetary Commission, established after the Panic of 1907, provided the intellectual foundation for the subsequent legislative efforts. Members studied European central banking models to determine the most effective methods for preventing systemic financial collapses in America. Research informed policy.

The Eccles Building serves as the primary headquarters and symbolizes the architectural and administrative permanence of the organization. Early development relied on the influence of several key legislators who sought to stabilize the national currency and provide a flexible monetary system. Stability was paramount.

The headquarters, named after Marriner S. Eccles, reflects the shift toward centralized authority that occurred during the New Deal era. Eccles advocated for the Banking Act of 1935, which significantly restructured the governing board to increase its independence from the Treasury Department. Autonomy grew.

The Supreme Court heard cases involving the organization on January 12, 2026, addressing its regulatory reach and operational boundaries. These legal challenges coincide with rising concerns over United States inflation following the release of November CPI Data on January 11, 2026. Inflation persists.

Jamie Dimon, the CEO of JPMorgan, rejected a potential role as chair on January 16, 2026, amid the ongoing federal investigations. The refusal highlights the current complexities of recruiting leadership during periods of heightened political and legal tension. Recruitment remains difficult.

Kevin Hassett emerged as a potential nominee on January 17, 2026, though the President expressed hesitation regarding his formal appointment. This uncertainty occurs as officials emphasized the necessity of maintaining a steady interest rate hold on January 15, 2026. Rates held steady.

Sources: news reports

Perspectives

Perspectives

Institutional Independence Advocates
Former Federal Reserve chairs and many economists argue that central bank independence is essential for effective monetary policy. They contend that political interference, including criminal investigations of Fed officials, undermines the institution's ability to make decisions based on economic rather than political considerations. This group emphasizes the Fed's historical success in managing financial crises when operating independently.
— Based on statements from former Fed chairs and academic economic research
Executive Branch Oversight Proponents
Some political leaders and their supporters argue that the Federal Reserve should be more accountable to elected officials and the public. They contend that an unelected body should not wield such significant economic power without appropriate oversight. This perspective supports increased scrutiny of Fed decisions and leadership, viewing it as democratic accountability rather than harmful interference.
— Based on statements from current administration officials and political commentary
Financial Markets Participants
Banking industry leaders and financial market participants generally support Federal Reserve independence but also seek predictable, business-friendly policies. This group focuses on the practical implications of Fed decisions for lending, investment, and economic growth. They typically prefer stability in Fed leadership and clear communication about policy directions.
— Based on industry statements and financial sector analysis

Connections

Related Entities

Jerome PowellCurrent Chair of the Federal Reserve and subject of a 2026 DOJ investigation.Donald TrumpPresident of the United States who criticized the topic's leadership.Jamie DimonJPMorgan CEO who rejected a nomination to lead the topic.Kevin HassettPotential nominee for the chair position of the topic.Robert Latham OwenFounder of the Federal Reserve system.Department of JusticeGovernment agency conducting a criminal investigation into the topic's chair.Supreme Court of the United StatesJudicial body hearing cases related to the topic's authority.JPMorgan Chase & Co.Financial institution whose CEO was considered for a leadership role at the topic.

Personal Life

Personal

Jerome Powell currently manages a Department of Justice criminal investigation announced on January 12, 2026.

This legal scrutiny follows intense public criticism from Donald Trump regarding interest rate holds and institutional transparency.

Powell remains focused.

The Chair maintains a private residence in Chevy Chase, Maryland, with his wife, Elissa Leonard.

They married in 1985.

Leonard serves as a filmmaker and holds a leadership role with the Garden Club of America.

The couple raised three children in the Washington D.C. area while Powell navigated roles in both the public and private sectors.

Family life remains private.

Public records indicate the family participates in local community events and maintains a low profile outside of official functions.

Powell pursues several personal interests that contrast with his high-pressure role in global finance.

  • Commuting to the Eccles Building via bicycle
  • Playing the guitar during leisure hours
  • Studying historical biographies and economic theory

His professional history at The Carlyle Group provided a significant financial foundation before his return to public service.

He possesses wealth.

Financial disclosures from January 2026 value his personal assets between $20 million and $55 million.

Philanthropic activities often focus on environmental conservation and higher education initiatives within the Mid-Atlantic region.

He contributes regularly.

Media reports indicate he has served on the boards of various non-profit organizations and educational institutions over several decades.

The public perceives his communication style as a departure from the complex jargon of previous eras.

He speaks plainly.

This deliberate use of non-technical language aims to demystify monetary policy for the average American citizen.

Powell consistently advocates for the independence of the Federal Reserve as a core tenet of his leadership philosophy.

He resists pressure.

On January 13, 2026, former chairs expressed support for this stance following the initiation of the DOJ probe.

The Chair maintains a stoic demeanor during congressional testimony and press conferences.

He avoids theatrics.

This disciplined approach defines his public persona, even as January 15, 2026 reports suggest the executive branch has no immediate plans for his removal.

Sources: media reports, public records, financial disclosures

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Sources

Sources & Citations

Confidence Score: 95%
  1. [1] DOJ Opens Criminal Investigation Into Federal Reserve Chair Jerome Powell ()
  2. [2] Donald Trump Criticizes Jerome Powell Following DOJ Investigation ()
  3. [3] JPMorgan CEO Jamie Dimon Rejects Federal Reserve Chair Role ()
  4. [4] Federal Reserve Officials Emphasize Independence as Interest Rate Holds Increase ()
  5. [5] Federal Reserve (Q170470) ()

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