JAKARTA — Indonesia’s Prabowo Subianto reiterated his commitment to a $32 billion project to build the country’s new capital city as he made his first overnight stay there as president, the government said.

Questions about the fate of the Nusantara capital city project have lingered since Mr. Prabowo took office in October 2024.

The project is a legacy of his predecessor, Joko Widodo, who first announced his plan to move the capital 1,200 kilometers (745 miles) away from overcrowded and sinking Jakarta in Java island in 2019.

Construction of the city in a remote, southeastern part of Borneo island only began in 2022 after delays due to the pandemic and Mr. Widodo missed his target of moving the government by the end of his second and final term in 2024.

Analysts have said Mr. Prabowo is unlikely to have the fiscal space to fund his key programs while continuing to build Nusantara, which Mr. Widodo had envisioned as a green, futuristic capital surrounded by forest.

Mr. Prabowo’s visit, scheduled until Tuesday, “marks an important momentum for the journey to build the Nusantara capital city,” his office said in a statement late on Monday.

“President Prabowo’s presence in Nusantara demonstrates the government’s commitment to ensuring the development in the area proceeds according to plan and is sustainable,” it said.

The Nusantara National Capital Authority, which oversees the development, said in a separate statement that offices and supporting infrastructure for the executive branch were ready.

Construction was underway to meet a completion target of 2028 for buildings for the legislative and judicial branches of government, it said.

Mr. Prabowo last year approved a budget of 48.8 trillion rupiah ($2.89 billion) for the project until 2029, only about 60% of what Mr. Widodo spent between 2022 and 2024.

Mr. Prabowo’s government ran a budget deficit of 2.92% of GDP in 2025, among the largest in two decades and close to a legal deficit ceiling of 3% of GDP.

The Constitutional Court last year halved the maximum duration of land rights for investors in Nusantara, dealing another blow to the project. — Reuters

WASHINGTON — Jerome Powell, head of the US Federal Reserve, said on Sunday the Justice Department has opened a criminal investigation against him for allegedly misleading Congress about a building renovation project at the central bank’s headquarters.

The action marks a dramatic escalation in President Donald Trump’s pressure campaign against the top policymaking body for the US economy, which Trump thinks is not lowering interest rates fast enough.

The White House says Trump did not order the investigation, but Trump, who has threatened to fire Powell, has called on him to resign, and has said he should face legal consequences for the renovation’s cost overruns.

Outside observers say Trump’s actions could erode the independence of the world’s most important central bank and reduce confidence in the US economy.

WHY DOES THIS MATTER?
Since returning to office a year ago, Trump has sought to bend the US government to his will by firing tens of thousands of civil servants, eliminating internal watchdog positions, and dismissing Democratic appointees from agencies like the Federal Trade Commission that were set up to be run in an independent fashion.

The Fed is just one of his targets, but perhaps the most significant.

The Federal Reserve is tasked with keeping inflation in check, unemployment low and the financial system operating smoothly. It does this by setting the baseline for the cost of credit. While the Fed only controls the federal funds rate – the interest rate that banks charge each other for overnight loans – that serves as a foundation for the cost of other types of lending like home mortgages and credit cards.

If the Fed sets the interest rate too high, that can discourage borrowing, which can then weigh on consumption and investment and slow the economy. If the Fed sets interest rates too low, the economy can overheat, leading to higher inflation. The Fed sharply hiked the federal funds rate in 2022 and 2023 to combat inflation following the COVID-19 pandemic and has been gradually lowering it since 2024. It cut rates three times at the end of last year.

WHAT’S MEANT BY FED INDEPENDENCE?
Congress designed the Fed to be insulated from political pressure. The seven members of its Board of Governors serve 14-year terms, which ensures that no president can nominate a majority. Moreover, board members make interest-rate decisions with five of the 12 regional bank presidents casting votes as well on an annual rotation, which decentralizes power from Washington. The Fed also controls its own budget and does not rely on Congress for funding.

Trump has repeatedly called on the Fed to slash interest rates to as low as 1% – a level rarely seen outside of a crisis – and he has criticized Powell when the central bank has not followed his wishes.

Trump also tried to fire another Fed governor, Lisa Cook, for allegedly filing misleading mortgage documents. Cook has denied wrongdoing and sued to keep her job. The Supreme Court is due to hear her case on January 21, and its decision is expected to have major implications for the central bank’s independence.

IS THIS NORMAL?
No. While past presidents have on occasion pressured the Fed to lower interest rates, none has ever publicly threatened to fire Fed officials or targeted them with criminal charges.

The Justice Department also is playing an unusual role here. The agency has filed criminal charges or announced investigations into several of Trump’s political rivals over the past year, including former FBI Director James Comey, New York Attorney General Letitia James and Democratic Senator Adam Schiff. That’s a sharp departure from previous administrations, as prior attorneys general have operated with a degree of independence from the White House in order to maintain public confidence in law enforcement.

WHAT IS THE RENOVATION PROJECT?
A planned renovation of two historic buildings in the Fed’s Washington headquarters has run over its initial budget of $1.9 billion to about $2.5 billion. That has been attributed to higher-than-expected labor and materials costs, design changes, and unforeseen issues like asbestos and lead contamination.

Trump has accused Powell of mismanagement and suggested potential fraud, though he has not provided evidence. The White House has also criticized the project as ostentatious, with claims of lavish features like VIP elevators and premium marble. Powell has said that is not accurate and has defended the need to remove hazardous materials.

WHAT IS POWELL BEING INVESTIGATED FOR?
Powell said in a video statement that he has been served with subpoenas by the Justice Department for his testimony to the Senate Banking Committee last July about the renovation. That could indicate the Justice Department is preparing to indict him for lying to Congress – a charge the department also brought against Comey. That case was thrown out of court.

Powell has denied wrongdoing, and the Justice Department has not yet commented on the investigation.

Several Republican members of the Senate Banking Committee have said they are not troubled by the renovation project, or Powell’s testimony about it.

COULD THIS BACKFIRE ON TRUMP?
Potentially. Powell’s term as Fed chair will end in May, but he could opt to remain on the board until 2028, delaying Trump’s opportunity to further reshape the board with more sympathetic figures.

Trump’s move is also upsetting some Republicans in Congress, who until now have largely been deferential to the president.

Senator Thom Tillis of North Carolina said he will not support any of Trump’s future Fed nominees, and Senator Lisa Murkowski of Alaska has called for an investigation of the Justice Department. Tillis’ opposition is significant as he sits on the Banking Committee that oversees the Fed, and Republicans hold just a slender 13-11 majority.

His opposition could deadlock the committee and prevent any nominees from advancing to a confirmation vote in the full Senate. That could prevent Trump from installing a permanent ally after temporary appointee Stephen Miran’s term expires on January 31. The Senate’s top Republican, John Thune, acknowledged Monday that the Powell investigation could make it harder to confirm Fed nominees.

Of course, Trump’s pressure campaign could also succeed. Powell and Cook could be forced off the Fed board one way or another. The Supreme Court could rule that Trump has the right to fire Cook, and Powell could get criminally charged and found guilty.That would open up two spots for Trump to fill.

The Fed next meets to set interest rates on January 27-28, with little expectation of another rate cut. Indeed, several of this year’s crop of voting regional bank presidents are opposed to any further rate cuts and so far seem unbowed by Trump’s pressure.

WHAT DO INVESTORS THINK SO FAR?
Outside observers argue that a politicized Fed would have less freedom to steer the economy as it sees fit, raising the risk of higher inflation and undermining the dollar’s status as the world’s reserve currency. That could cause investors to demand higher interest rates for US government debt and raise borrowing costs, analysts say.

Analysts warn that the Powell investigation is a clear sign that the Fed’s independence is at risk, but investors do not seem alarmed … yet. After a lower start on Monday, major US stock indices closed modestly higher. — Reuters

SOME IRANIANS are still using Elon Musk’s Starlink satellite internet service despite a nationwide communications blackout, three people inside the country said, the latest example of Starlink being used to counter internet shutdowns in geopolitical flashpoints.

Iranian authorities have in recent days launched a deadly crackdown on nationwide protests, including the near-complete shutdown of internet service, which is provided through fiber-optic cables and cellphone towers.

But Starlink, which beams its service directly from thousands of low-earth orbit satellites, is still working in some places in Iran, despite being banned by authorities there, three people using Starlink in the country told Reuters. One of them, in Western Iran, said he knew dozens of people using Starlink and that users in border towns and cities were largely unaffected.

Alp Toker, founder of internet monitoring group NetBlocks, said he has heard from people in the region that there is still some Starlink access in Iran, though service appears reduced.

“It is patchy, but still there,” he said.

Mr. Toker added a broader internet blackout that began in Iran on January 8th continued on Monday, with non-satellite connectivity at around 1% of usual levels in the country, based on the fixed-line and mobile internet data NetBlocks tracks.

While it is not clear how Starlink’s service was being disrupted in Iran, some specialists said it could be the result of jamming of Starlink terminals that would overpower their ability to receive signals from the satellites.

Starlink, which is part of privately held US company SpaceX, did not respond to requests for comment. Authorities in Iran could not be reached on Monday, amid phone and internet outages. Iranian authorities have blamed the unrest on terrorists and vowed to safeguard the governing system.

CRITICAL TOOL AMID GLOBAL CONFLICTS
The communication lifeline Starlink has provided for some protesters in Iran is the latest sign of the influence Mr. Musk and his satellite internet service have in global conflicts and unrest around the world.

Starlink has been a critical tool for Ukrainian forces since Russia’s full-scale invasion in 2022. In Myanmar, where the military junta has imposed repeated internet shutdowns, rebel groups, aid organizations, and medics have used Starlink for communications. In Sudan, Starlink has also been used by both sides in a years-long civil war due to prolonged blackouts.

US President Donald Trump said on Sunday he plans to speak with Mr. Musk about restoring internet in Iran, without mentioning Starlink.

Mr. Musk previously shipped free Starlink terminals, which are slightly larger than a laptop, to Ukraine and offered free internet service there. Standard Starlink terminals cost around $599, plus a monthly service fee, making it unaffordable for many Iranians.

Mr. Musk’s ability to tip the balance in global conflicts was demonstrated when he shut down Starlink as Ukraine retook territory from Russia in 2022, Reuters previously reported.

Starlink is not licensed to operate in Iran, but Mr. Musk has previously said the service is active there. In December 2022, he posted on his social media platform X that the company was “approaching 100 Starlinks active in Iran,” a modest figure given Iran’s population of 92 million.

In June last year, in response to a post on X calling for him to provide Starlink access to Iran, Mr. Musk posted “beams are on.”

Following the 12-day war between Iran and Israel in June, Iran’s parliament passed a law formally banning the use of Starlink, introducing severe penalties for those who use or distribute the unlicensed technology, according to Iranian state media.— Reuters

VENEZUELA’S government said on Monday that 116 prisoners have so far been released as part of process announced last week, though rights groups reported a lower figure as family members of the detained awaited liberations, with some sleeping outside prisons.

By late afternoon on Monday, Unidad Venezuela, a group of opposition parties, said just 65 people had been freed so far, urging the Venezuelan government in a post on X to “speed up the release process so that the suffering of political prisoners and their families can finally come to an end.”

Legal advocacy group Foro Penal had a count of just 49.

The government figure, published by the Penitentiary Services Ministry, followed three days of reports from rights organizations about delays in releases. The ministry said those being freed had been involved in “acts associated with disrupting the constitutional order and undermining the stability of the nation.”

Supporters and family members have spent the weekend gathering at detention centers throughout the capital Caracas, where they also held candlelit vigils and some stayed overnight on mattresses outside, hoping to see their loved ones set free.

“I have visited several detention centers and the answer is always the same: he is not here. A long time has passed, and I have no proof of life. I demand proof of life because I need to know how my husband is. It’s been more than a year without hearing my husband’s voice,” said Mariana Gonzalez de Tudares, the daughter of the opposition’s former presidential candidate Edmundo Gonzalez. Her husband Rafael Tudares was detained in January 2025 while driving his two young children to school.

The dripfeed of releases comes after a week of political turmoil in Caracas following the capture of President Nicolas Maduro by the United States, and his appearance in a New York court on drug trafficking charges.

The release of hundreds of political prisoners in the South American country is a long-running demand of human rights groups, international bodies and opposition figures.

Opposition leader and Nobel Peace Prize winner Maria Corina Machado, who is due to meet with US President Donald Trump this Thursday and several of whose close allies are detained, has been one of the main voices calling for releases.

Ms. Machado visited the Vatican on Monday, where she met Pope Leo and asked him to intercede for all Venezuelans who “remain kidnapped and disappeared.”

The head of Venezuela’s National Assembly, Jorge Rodriguez, had said on Thursday that a significant number of prisoners, both foreign and Venezuelan, would be released, though the government has not given a total.

According to Foro Penal, at least 800 people were being held as political prisoners at the beginning of the year in Venezuela. The government denies that there are detainees held for political reasons.— Reuters

The Trump administration’s decision to open a criminal investigation into Fed Chair Jerome Powell drew condemnation from former Fed chiefs and a chorus of criticism from key members of Trump’s Republican Party on Monday, following an unusually sharp public rebuke from Powell calling the move a “pretext” to win presidential influence over interest rates.

The investigation, revealed late on Sunday when Powell said the Fed had received subpoenas from the US Justice Department, was approved and started by Jeanine Pirro, the US Attorney in Washington and an ally of President Donald Trump, according to two sources with knowledge of the investigation.

Neither Attorney General Pam Bondi nor Deputy Attorney General Todd Blanche was briefed about the decision to subpoena the Fed last week, one of the sources added.

The threat of indictment, ostensibly focused on comments Powell made to Congress about a building renovation project, sent rates on longer-term US Treasury bonds up, as investors parsed what a less independent Fed could mean for inflation and monetary policy.

If amplified, such a market reaction could constrain Trump’s efforts to reshape the Fed, considered the most influential central bank in the world and a cornerstone of the world financial system. A rise in long-term borrowing costs could also backfire against Trump’s efforts to address broad concerns about “affordability.”

The independence of central banks, at least in setting rates in order to control inflation, is considered a central tenet of robust economic policy, insulating monetary policymakers from short-term political considerations and allowing them to focus on longer-term efforts to keep prices relatively stable.

On Monday, former Fed chairs Janet Yellen, Ben Bernanke and Alan Greenspan joined with former government economic policy leaders from both political parties in raising the alarm.

“This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly,” they wrote. Global central bankers including the chiefs of the French and Canadian central banks publicly offered solidarity.

US Republican Senator Thom Tillis, a member of the Senate Banking Committee that vets presidential nominees for the Fed, called the move a “huge mistake” on Sunday and said he would oppose any Trump nominees to the Fed, including whoever is named to succeed Powell as central bank chief, “until this legal matter is fully resolved.”

He was joined on Monday in condemning the development by fellow Banking Committee member Kevin Cramer and Senator Lisa Murkowski, who wrote on X that “the stakes are too high to look the other way: if the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.”

Senator Cynthia Lummis, one of Powell’s more strident critics usually, on Monday said the Justice Department’s use of a criminal statute looked like a “heavy lift” and that she did not see any criminal intent.

“We need this like we need a hole in the head,” quipped Senator John Kennedy, also on the banking committee.

Treasury Secretary Scott Bessent told Trump on Sunday that the investigation “made a mess” and could be bad for financial markets, Axios reported on Monday, citing two sources.

The rise in longer-term rates notwithstanding, market reaction was relatively muted. Gold hit a record high and the dollar fell. Major US stock indexes notched record closing highs after gains from artificial intelligence stocks and Walmart.

“The market looks to be taking substantial reassurance from the fact that Powell’s decision to call out the attack on Fed independence has triggered a backlash in the Senate that will be reinforced by public support from former Fed chairs and Treasury Secretaries,” wrote Evercore ISI’s Krishna Guha.

Powell – who was nominated by Trump to lead the Fed in late 2017 and confirmed by the Senate to the position in early 2018 – will complete his term as Fed chief in May, but he is not obligated to leave its Washington-based Board of Governors until 2028. A number of analysts saw the latest move by the administration as adding to the chances that he will defiantly remain at the central bank.

The criminal indictment threat emerged about two weeks before Trump’s effort to fire another Fed official, Governor Lisa Cook, will be argued before the Supreme Court.

Until now Powell had avoided public disagreement with the Trump administration, Republican lawmakers had been largely silent and investors had been warily watching as the sparring match between the White House and the Fed played out during Trump’s second term.

Powell’s pointed response and signs of congressional pushback appear to open a new and more highly charged chapter in that row, even as House Speaker Mike Johnson told reporters he’d let the process “play out.”

‘THREATS AND ONGOING PRESSURE’

The subpoenas from the US Justice Department last week pertained to remarks Powell made to Congress last summer over cost overruns for a $2.5 billion building renovation project at the Fed’s headquarters complex in Washington, and threatened a criminal indictment.

“I have deep respect for the rule of law and for accountability in our democracy. No one – certainly not the chair of the Federal Reserve – is above the law,” Powell said.

“But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure” for lower interest rates and more broadly for greater say over the Fed, he said.

“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’ oversight role … Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”

Trump told NBC News Sunday that he had no knowledge of the Justice Department’s actions. “I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said.

A Justice Department spokesperson declined to comment on the case but added: “The Attorney General has instructed her US Attorneys to prioritize investigating any abuse of taxpayer dollars.” — Reuters