The Federal Reserve on Friday received grand jury subpoenas from the Justice Department stemming from a criminal investigation into its chair, Jerome Powell, he said in a video statement on 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 last year came under scrutiny of the Trump administration, 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 spokesperson for the Department of Justice 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.
Powell was first nominated as Fed chair by Mr. Trump during his first term, replacing Obama appointee Janet Yellen, and the Senate confirmed him 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.”
