Investigation Launched Against Fed Chair Jerome Powell, Federal Prosecutors Probe Headquarters Renovation Project

Washington — Federal prosecutors have confirmed that they are investigating U.S. Federal Reserve Chair Jerome Powell over a multi-billion-dollar project to renovate the Federal Reserve’s headquarters.

In a public statement posted late Sunday on the Federal Reserve’s website, Powell said the U.S. Department of Justice served the Fed with a grand jury subpoena on Friday. According to Powell, the subpoena signals the possibility of criminal charges related to his testimony before the Senate Banking Committee in June last year.

He said the testimony was partly related to a multi-year renovation project of the Federal Reserve’s historic office buildings.

Calling the move “unprecedented,” Powell said it must be understood in the broader context of continued pressure and threats from the administration. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on what best serves the public, rather than following the preferences of the President,” he said.

Powell stressed that the matter goes beyond a personal issue and is directly linked to the independence of the Federal Reserve. “The question is whether the Fed will remain free to set interest rates based on evidence and economic conditions, or whether monetary policy will instead be driven by political pressure and intimidation,” he said.

Powell also reaffirmed his commitment to carry out the responsibilities confirmed by the Senate with integrity and dedication to serving the American people.

According to local media, the investigation is being overseen by the U.S. Attorney’s Office for the District of Columbia.

Since resuming office in January 2025, President Donald Trump has repeatedly criticized Powell for not cutting interest rates as quickly and as deeply as he demanded.

Powell was first appointed as Fed chair in 2018 during Trump’s previous term and was reappointed for a second term in 2022 by then-President Joe Biden. His current term is scheduled to expire in May 2026.