The chair of the United States Federal Reserve, Jermey Powell, said on Sunday that Federal prosecutors are conducting a criminal investigation against him based on his statements about renovation funds used for central bank's headquarters in Washington, DC.
In a video statement tweeted on X, Powell said that the criminal charges against him were a consequence of the Federal Reserve setting interest rates based on what will serve the public rather than following the preferences of the United States President Donald Trump.
“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 said in the video.
He also said that the outcome of the investigation will determine the future of the central bank's decisions.
Trump, meanwhile, has denied that he had any involvement in the investigations and said that he did not direct it.
In an interview with NBC News he said, “I don't know anything about it.”
What the investigation is about
The subpoenas issued against Powell are tied to his testimony before the senate regarding the innovation costs, which went up to $2.5 billion, at Federal Reserve office buildings.
Powell, in his statement, said that the charges should be seen within the context of the pressure the Federal Reserve has been under from the White House.
Trump, meanwhile, said that the charges had nothing to do with the rate policies and that Powell “hurt a lot of people.”
The investigation is being overseen by the US Attorney's office for the district of Columbia, according to the New York Times.
The probe has now come to light after Rep Anna Pauline Luna referred Powell to the Department of Justice for perjury and false statements he allegedly made about the renovations.
In a tweet on Sunday, she said, “I laid out, in detail, how Jerome Powell lied under oath to Congress and misrepresented facts in official communications to senior administration officials, including OMB Director Russell Vought. “Unelected bureaucrats do not get a free pass. This is exactly why oversight exists, and I am thankful the @DOJ is taking this seriously. No one is above the law.”
Trump and Jeremy Powell
Jeremy H. Powell is currently serving his second four year term as the chair of the Board of Governors of the Federal Reserve System after being sworn in on May 23, 2022. His term is to end in May, 2026.
Last month, Trump had said that he expected the next chairman of the Federal Reserve to keep interest rates low and never “disagree with him.”
Trump has long pressured the US central bank to cut interest rates in a bid to boost the economic growth of the country. He has threatened Powell for not following his directives on the interest rates and has called him “numbskull,” “major loser,” and a “fool” on multiple occasions.
He had also said that he would file a lawsuit against the chair for “gross incompetence’ on December 29.
While speaking to Israeli PM Benjamin Netanyahu in December, 2025, Trump falsely claimed that the innovation costs for the federal reserve building went up to $4.1 billion and called it the "highest price in the history of construction.”
The Federal Reserve had already cut interest rates three times in 2025, landing at 3.5 to 3.75 percent in mid-December. Trump said that it should be as low as 1 percent. Lower interest rates would encourage borrowing and spending; however, cutting them sharply would raise the risk of inflation.
Some of the top candidates that could replace Powell include Kevin Hassett, director of the National Economic Council; Kevin Warsh, a financier and former Fed governor; and Christopher Waller, a current Fed governor, according to the CNBC.
The move has brought in sharp critisim and reactions from both sides. Senator Elizabeth Warren of Massachusetts, said that Trump "is abusing the law like a wannabe dictator so the Fed serves him and his billionaire friends."
Meanwhile Senator Thom Tillis of North Carolina, a Republican member of the Banking Committee said that he would "oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved."