Trump DOJ opens criminal investigation into Fed chair Jerome Powell

Powell confirmed the inquiry in a statement posted to X with the Federal Reserve, saying that the DOJ has “threatened a criminal indictment related to [his] testimony" and blamed Trump for the investigation.

https://twitter.com/federalreserve/status/2010510130970849338?s=20

When he was asked about the investigations on Sunday evening, President Donald Trump said, “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."

Two of the main Fed buildings, located in the area of Foggy Bottom in the nation's capital, started a renovation project costing $2.5 billion in 2022. The central bank was covering the cost of the renovation through its own expenses and revenue.

Powell previously said of the project that he "came to understand how badly the Eccles Building really needed a serious renovation" and that the building is "not really safe." Republicans have accused Powell of lying about expensive and luxurious features that would be added to the building through the renovations. The features include a VIP dining room, an outdoor terrace, and others. Trump has previously grilled Powell over the renovations, pressuring him on the subject.

In June 2025, Powell testified before the Senate Banking Committee, where he tried to assure lawmakers that the project was not too costly. “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," he said at the time. The plans for the renovations, however, have called for each of those features, per the New York Post.

On Sunday, Powell released the statement condemning the investigation by the DOJ, “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."

"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation," he added. “I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people."

Powell, although he was nominated under Trump's first term, has butted heads with the president on interest rates. Powell's term expires May 2026, and the completion of the renovation project is expected to be finished in the fall of 2027.