DOJ probe on Powell draws swift backlash from Congress as key GOP senator says he won’t confirm anyone for the Fed until case is resolved

Lawmakers sounded the alarm on the Justice Department’s criminal inquiry into Federal Reserve Chairman Jerome Powell, putting at risk President Donald Trump’s efforts to name a new central bank leader.

On Sunday, Powell revealed that the DOJ served the Fed with grand jury subpoenas, threatening a criminal indictment over his testimony before the Senate last June related to renovations on the headquarters, which has seen cost overruns.

He called the allegations a pretext and...