Washington, D.C. — The Department of Justice has opened a criminal investigation into Federal Reserve Chair Jerome Powell, a rare move that has intensified concerns about political pressure on the nation’s central bank.
Powell confirmed Sunday that the Federal Reserve received grand jury subpoenas tied to testimony he gave before the Senate Banking Committee regarding renovation costs for the Fed’s headquarters. The project, which began in 2022, involves major infrastructure upgrades to two historic buildings, including asbestos removal, electrical replacements, and security improvements. Powell has disputed claims by President Trump that the costs reached as high as $3.1 billion, saying the estimates were significantly lower.
In a public statement, Powell denied any wrongdoing and described the inquiry as “unprecedented.” He suggested the investigation was linked less to construction issues and more to long-standing political frustration over interest rate policy. Trump has repeatedly criticized Powell for not lowering rates sooner, often attacking him personally and labeling him “Too Late.”
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions,” Powell said, warning that criminal threats risk undermining central bank independence.
The probe follows months of public attacks from the White House and comes as Powell’s term as chair is set to expire in May. Sen. Thom Tillis (R-N.C.) said he will block confirmation of any new Federal Reserve nominees until the matter is resolved, arguing the investigation jeopardizes both the Fed’s independence and the credibility of the DOJ.
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