Federal prosecutors have launched a criminal investigation into Federal Reserve chair Jerome Powell regarding the central bank’s renovation of its Washington headquarters, the official said Sunday.
In a statement, Powell accused the investigation of being politically driven. President Trump has long pressured the independent central bank head to do more to slash interest rates.
“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,” Powell said in a statement.
The investigation was reportedly approved in November by U.S. Attorney for the District of Columbia Jeanine Pirro, a former Fox News host and longtime Trump ally who was confirmed in August.
The Independent has contacted Pirro’s office and the central Department of Justice for comment.
“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 added in his statement. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
The investigation prompted criticism from Sen. Thom Tillis, a Republican member of the Senate Finance Committee, who warned the move undermined the independence of the Fed.
“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” Thillis wrote on X. “It is now the independence and credibility of the Department of Justice that are in question. I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.”
Frequent critics of the president also spoke out against the investigation.
“Good for Jerome Powell for standing up to this corrupt authoritarian absurdity,” former Obama administration official and podcaster Dan Pfeiffer wrote on X.
The Independent has contacted the White House for comment.
Powell was alerted to the investigation Friday, when the Department of Justice served the Federal Reserve with grand jury subpoenas regarding Powell’s testimony last June before the Senate Banking Committee about the renovation.
Trump nominated Powell in 2017, but has since soured on the official, and spent much of 2025 pushing him to cut rates.
The renovation project has been underway since Trump’s first term, but only recent caught the president’s attention, as he pushed to oust Powell.
“When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful,” Trump said last July.
The Trump administration has criticized the project for going over its original $600 million budget, a spike the Fed attributed to early 2020s inflation and an unexpected amount of asbestos that needed removal.
This is a breaking news story and will be updated with new information.
