Federal Reserve Chair Jerome Powell said subpoenas tied to a building renovation inquiry are being used to pressure the central bank over interest-rate policy.
By yourNEWS Media Newsroom
Federal Reserve Chair Jerome Powell said Sunday that the Department of Justice has served subpoenas on the central bank and raised the prospect of criminal charges related to his congressional testimony on a costly renovation project, a development he described as an attempt to undermine the Fed’s independence.
In a written and video statement released Sunday night, Powell said he respects the rule of law but characterized the investigation as an unprecedented escalation that goes beyond questions about construction spending.
“I have deep respect for the rule of law and for accountability in our democracy,” Powell said. “No one — certainly not the chair of the Federal Reserve — is above the law.”
He said the potential charges were being framed around his testimony and the renovation of the Federal Reserve’s Washington headquarters, but argued those issues were being used as a pretext.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” Powell said. “It is not about Congress’s oversight role; the Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project. Those are pretexts.”
Powell said the dispute centers on whether the Federal Reserve will continue to set interest rates based on economic data rather than political pressure.
“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. “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.”
A spokesperson for U.S. Attorney Jeanine Pirro’s office did not immediately respond to requests for comment Sunday.
According to a report by The New York Times, the inquiry was approved in November and is examining Powell’s public testimony and Federal Reserve spending records related to the renovation project. The overhaul of the Fed’s historic buildings began in 2022 and is now estimated to be about $700 million over budget, with total costs nearing $2.5 billion.
The Times reported that prosecutors have sought documents from Powell’s staff, though it is not publicly known whether a grand jury has been convened or whether formal subpoenas have been issued. Both the Justice Department and the Federal Reserve declined comment to the newspaper.
Powell has previously rejected claims that the renovation included luxury amenities, such as private dining rooms, special elevators, or new marble, saying earlier concepts were revised and scaled back. The Fed has attributed the cost overruns to higher labor and materials prices, as well as unforeseen contamination issues uncovered during construction.
The investigation adds to a long-running clash between Powell and President Donald Trump, who has repeatedly criticized the Fed chair for resisting aggressive interest-rate cuts. Trump has publicly threatened to remove Powell and said he has already selected a potential replacement, with Kevin Hassett, his top economic adviser, frequently cited as a leading candidate.
Powell’s term as Federal Reserve chair is scheduled to end in May, though his term as a member of the Fed’s Board of Governors runs through January 2028.
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