Federal prosecutors have opened a felony investigation into Federal Reserve Chair Jerome Powell, Powell stated Sunday night time.
Powell stated the Division of Justice served the Federal Reserve with grand jury subpoenas and threatened a felony indictment tied to his testimony earlier than the Senate Banking Committee final June a few multi-year renovation of historic Fed workplace buildings.
Powell says probe targets Fed independence
Powell argued the investigation goes past the renovation undertaking and is linked to stress from President Donald Trump to chop rates of interest.
Powell stated in his video assertion:
“That is about whether or not the Fed will be capable to proceed to set rates of interest based mostly on proof and financial situations—or whether or not as an alternative financial coverage shall be directed by political stress or intimidation.”
Renovation prices and prior referral
The Federal Reserve has described the undertaking as the primary renovation of the Eccles and 1951 Structure Avenue buildings because the Nineteen Thirties, together with well being and security work comparable to asbestos and lead removing.
The Fed has forecast the renovation at $2.5 billion, whereas Trump has claimed it should price $3.1 billion.
In July 2025, Trump toured the renovation web site with Powell, with each sporting white onerous hats.
Later that month, Rep. Anna Paulina Luna, R-Fla., despatched the DOJ a felony referral alleging Powell made false statements to the Senate Banking Committee concerning the undertaking.
Responses from DOJ, Trump, and lawmakers
An Lawyer Common Pam Bondi spokesperson advised ABC Information the DOJ is prioritizing investigations into potential abuse of taxpayer {dollars}.
A spokesperson for the U.S. Lawyer’s Workplace in Washington, D.C., stated it doesn’t touch upon ongoing investigations.
Trump advised NBC Information he didn’t know concerning the investigation and criticized Powell’s efficiency.
Powell’s time period as Fed chair ends in Could, although he stays on the Board of Governors till 2028.