Federal prosecutors have launched a criminal investigation into Federal Reserve chair Jerome Powell regarding the central bank’s renovation of its Washington headquarters, the top financial official said Sunday.
In a statement, Powell accused the investigation of being politically drive. 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.”
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.
