Wall Street Journal Attacks Trump
The editorial board of The Wall Street Journal issued a sharp warning this week over the Justice Department’s decision to issue a criminal subpoena involving Federal Reserve Chairman Jerome Powell, calling the move a serious political miscalculation.
In its commentary, the board argued that the action risks distracting the Trump administration from its core economic priorities at a time when voters remain focused on inflation, interest rates, and household affordability.
According to the editorial, the subpoena stems from Powell’s June testimony before Congress regarding renovations to the Federal Reserve’s headquarters in Washington, D.C. The project exceeded its original budget, drawing scrutiny from lawmakers and regulators.
However, the board noted that cost overruns are common in large federal construction projects. It also emphasized that the renovations were funded by the Federal Reserve itself, not by taxpayer dollars from the U.S. Treasury.
The editors pointed out that President Trump had previously appeared unconcerned about the issue. At one point, Trump even toured the construction site alongside Powell and publicly stated that he simply wanted the renovations completed.
Despite that apparent closure, the editorial suggested that elements within the administration continued to pursue the matter. The board cited reports prepared by Bill Pulte of the Federal Housing Finance Agency, which were said to have circulated to Jeanine Pirro, the U.S. Attorney for the District of Columbia.
The subpoena was reportedly issued with the approval of Attorney General Pam Bondi, raising questions about internal coordination and priorities.
The editorial cautioned that prosecutors may be attempting to determine whether Powell accurately described the renovation project to Congress or whether additional issues exist. Still, the board warned that pursuing criminal charges in such a context could undermine public confidence in financial institutions.
Drawing on historical parallels, the editors suggested that political leaders sometimes suffer unintended consequences when legal actions are pursued without clear public benefit.
The board stressed that disagreements over the Federal Reserve’s role or leadership should be resolved through legislation and oversight, not criminal investigations. Any changes to the Fed’s authority, the editors argued, belong in Congress.
With elections approaching, the board warned that voters are unlikely to be persuaded by disputes over building projects. Instead, Americans remain focused on inflation, retirement security, mortgage rates, and the cost of everyday goods.
Powell confirmed over the weekend that the Federal Reserve received grand jury subpoenas related to his congressional testimony. He stated that while accountability is essential, the investigation should be viewed in the broader context of ongoing political pressure surrounding interest rate policy.
Several lawmakers voiced concern about the situation. Senator Lisa Murkowski suggested that if the inquiry centers solely on construction costs, Congress may need to review the Justice Department’s actions instead.
President Trump later said he was unaware of the investigation but reiterated his long-standing criticism of Powell’s performance, particularly regarding interest rates and project management.
