WASHINGTON D.C. January 12, 2026 – White House Press Secretary Karoline Leavitt stated on Monday that the Department of Justice (DOJ) will determine whether Federal Reserve Chairman Jerome Powell has engaged in criminal conduct, amid ongoing criticisms from President Donald Trump.
Speaking to reporters outside the White House during a live C-SPAN broadcast, Leavitt responded to questions about the president’s longstanding public criticism of Powell’s performance and whether it influenced any potential investigations.
A reporter asked: “Did the president ever direct DOJ officials to open an investigation into Powell? … And can you reassure the American public that these longstanding criticisms and public comments about Powell had nothing to do with the investigation?”
Leavitt firmly denied any direct presidential directive, emphasizing Trump’s First Amendment rights.
“Look, the president has every right to criticize the Fed chair — he has a First Amendment right, just like all of you do,” Leavitt said. “One thing for sure the president has made quite clear is Jerome Powell was bad at his job.”
She continued: “As for whether or not Jerome Powell is a criminal, that’s an answer the Department of Justice is going to have to find out — and it looks like they intend to find that out.”
The remarks come amid President Trump’s repeated accusations that Powell mishandled monetary policy during his tenure, including criticisms over interest rates and economic management. The suggestion of a possible DOJ inquiry marks an escalation in the administration’s rhetoric toward the traditionally independent Federal Reserve.
No official confirmation of an active DOJ investigation into Powell has been announced by the department as of this report.
The exchange quickly gained traction online, with a clip shared by the official White House Rapid Response account on X (formerly Twitter) garnering significant attention.
Leavitt, who has served as press secretary since the start of President Trump’s second term, delivered the comments in front of the White House north lawn, as broadcast live on C-SPAN.
The White House has not provided further details on the matter, and the Federal Reserve has historically maintained independence from political interference. Powell’s term as Fed Chair is set to continue until 2028, unless removed or replaced under specific circumstances.
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