Business Rundown: Fed Chair On Hot Seat, As Criminal Probe Rocks the Federal Reserve

In a video released Sunday evening, Federal Reserve Chair Jerome Powell announced that he is under investigation by the Justice Department over his testimony last year about the Fed’s building renovation project.

Powell says the central bank has received grand jury subpoenas. He defended the renovations at the center of the criminal probe and denied any wrongdoing. He also claimed he is being targeted for not aligning with President Trump’s preference for cutting interest rates.

The president, who has been a public critic of Powell and his policies, says he had no knowledge of the investigation. Critics say this places the administration under scrutiny.

This bombshell comes just as President Trump says he is winding down his search for the next Federal Reserve chair.

Gary Kaltbaum, the president of Kaltbaum Capital Management and a Fox Business contributor, joins FOX Business Network’s Lydia to react to the news of the criminal probe and the buzz among investors as they wait to see who the next Fed chair may be.