The U.S. Justice Department has opened a criminal investigation into Federal Reserve Chair Jerome Powell, officials confirmed Sunday. The probe focuses on Powell’s statements to Congress about the $2.5 billion renovation of the Federal Reserve headquarters.
In a video message, Powell called the investigation “unprecedented” and warned it should be viewed in the broader context of political pressure from the Trump administration.
Powell said he respects the rule of law but stressed that the Federal Reserve sets interest rates based on its independent assessment, not the president’s preferences. He described the possibility of criminal charges as a consequence of this independence.
The investigation follows repeated attacks from President Donald Trump, who has criticized Powell for not cutting interest rates aggressively and has threatened to fire the Fed chair over the building renovation.
Grand jury subpoenas have already been issued to the Federal Reserve. Powell emphasized that the central bank acts to serve the public, not political interests.
This development marks a major escalation in the ongoing feud between the White House and the Federal Reserve leadership. Analysts warn it could have serious implications for U.S. monetary policy and financial markets.
The Justice Department and the White House declined to comment. Powell’s office said the investigation is ongoing.
This is a developing story.
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