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The Federal Reserve received grand jury subpoenas from the Justice Department Friday stemming from a criminal investigation into its chair, Jerome Powell, he said in a video statement Sunday.
The subpoenas threatened a criminal indictment related to Powell’s testimony before the Senate Banking Committee in June 2025, according to Powell.
“That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings,” Powell said.
The project and Powell’s testimony came under scrutiny by the Trump administration last year, with Office of Management and Budget Chair Russell Vought accusing Powell of leading an “ostentatious” office renovation project that may be “violating the law.”
In his testimony to the Senate, Powell called some descriptions of the renovation project “misleading and inaccurate.” He told lawmakers there isn’t any new marble aside from what’s necessary to replace broken old marble and said there are no “special elevators,” new water features or rooftop gardens, disputing claims made by Vought.
“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 said Sunday. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’ oversight role; the Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project. Those are pretexts. 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, a Department of Justice spokesperson said Attorney General Pam Bondi “has instructed her U.S. Attorneys to prioritize investigating any abuse of tax payer dollars,” but did not refer to any specific case.
President Trump told NBC News Sunday night he didn’t know about the Powell probe. “I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” he remarked.
White House National Economic Council chief Kevin Hassett, rumored to be one of Mr. Trump’s top choices to replace Powell when his term is up at the Fed this year, said Monday morning that he “respects the independence of the Justice Department and the Fed.”
Asked if he was worried about volatility in the markets due to the Fed tumult, Hassett said: “I would expect that the markets would be happy to see that there’s more transparency at the Fed.”
Bipartisan criticism
Senators from both sides of the aisle blasted the investigation.
Republican Sen. Thom Tillis, of North Carolina, said in a statement that, “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. 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.”
Tillis sits on the Senate Banking Committee, which will hold confirmation hearings and vote on the president’s pick to replace Powell as chair of the Federal Reserve. The committee has 13 Republicans and 11 Democrats, so his opposition could prevent the committee from advancing the nomination for a full Senate vote.
Senate Minority Leader Chuck Schumer, a New York Democrat, called the probe “an assault on the Fed’s independence.”
“This is the kind of bullying that we’ve all come to expect from Donald Trump and his cronies. Anyone who is independent and doesn’t just fall in line behind Trump gets investigated,” Schumer said on social media.
Democratic Sen. Elizabeth Warren, of Massachusetts, the ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, said in a statement that the president “is abusing the authorities of the Department of Justice like a wannabe dictator so the Fed serves his interests, along with his billionaire friends. This Committee and the Senate should not move forward with any Trump nominee for the Fed, including Fed Chair.”
And Sen. Mark Warner, a Democrat form Virginia who also sits on the Banking Committee, issued a statement saying, “The Fed was designed to operate independently, insulated from political pressure, so that it can make tough decisions based on data and the long-term health of the economy, not the whims of any one president. … Uncertainty and instability can ripple through the economy, affecting borrowing costs and making it harder for families to buy a home, run a small business, or afford everyday necessities like food, fuel, and diapers.”
Powell was first nominated as Fed chair by Mr. Trump during his first term, replacing Janet Yellen, an appointment of President Barack Obama, and the Senate confirmed Powll in an 84-13 vote. Former President Joe Biden nominated him to a second term, keeping him in office until May 2026.
For months last year, Mr. Trump expressed his unhappiness with the Fed’s decision to leave interest rates stable. The president argued that inflation was already low enough to start cutting rates. It wasn’t until late 2025 that the Fed started cutting rates.
The president has repeatedly threatened to fire Powell, including as recently as last month.
Closing out his statement Sunday, Powell said, “I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. … I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”
