A Justice Department criminal investigation, criticism from senior Trump administration officials and a looming successor announcement set the stage for a politically charged exchange that Federal Reserve Chairman Jerome Powell largely avoided on Wednesday.
Powell spoke following the Fed’s interest rate-cut decision, marking his first appearance since the Justice Department opened a criminal investigation into his congressional testimony on the Fed’s headquarters renovation.
Reporter: “Can you say whether the Fed has responded to the subpoenas?”
Powell: “I have nothing for you on that today.”
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In a separate line of questioning, Powell was asked if he would stay at the Federal Reserve following his term as chair, which ends in May.
Reporter: “Have you made a decision on whether you would remain as a governor of the Federal Reserve?”
Powell: “No, and once again, I have nothing for you on that today.”
Reporter: “Why would you want to leave at all under the circumstances?”
Powell: “Again, I don’t want to get into this. There’s a time and place for these questions, and it’s not something I’m going to get into today.”
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When asked about conversations with lawmakers, Powell also declined to discuss them.
Reporter: “Republican Sen. Thom Tillis, who sits on the Senate Banking Committee, said he will block any Fed nominee, including the chair, until this investigation into you is resolved. Do you support this move by the senator? And what conversations have you had with the senator?
Powell: “I’ve got nothing for you on that.”
Powell referred questions related to the probe to his rare Jan. 11 video statement, a sharp break with his typically measured approach. He confirmed the investigation and said he respected the rule of law and congressional oversight, but described the action as “unprecedented” and driven by political pressure.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” Powell said in a video statement on Jan 11.
“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,” he added.
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The project to update the Federal Reserve’s two main Washington, D.C., office buildings in the Foggy Bottom neighborhood is expected to cost $2.5 billion and is being paid for by the central bank, not taxpayers. The Fed funds its operations without congressional appropriations, drawing revenue primarily from interest on government securities and fees charged to financial institutions.
In June 2025, Powell told members of the Senate Banking Committee that “There’s no new marble. There are no special elevators. They’re old elevators that have been there. There are no new water features. There are no beehives, and there’s no roof garden terraces.”
Powell also told lawmakers that no one “wants to do a major renovation of a historic building during their term in office.”
“We decided to take it on because, honestly, when I was the administrative governor, before I became chair, I came to understand how badly the Eccles Building really needed a serious renovation,” Powell said, adding that the building is “not really safe” and not waterproof.
