Federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell, Powell said Sunday night.

Powell said the Department of Justice served the Federal Reserve with grand jury subpoenas and threatened a criminal indictment tied to his testimony before the Senate Banking Committee last June about a multi-year renovation of historic Fed office buildings.

Powell says probe targets Fed independence

Powell argued the investigation goes beyond the renovation project and is linked to pressure from President Donald Trump to cut interest rates.

Powell said in his video statement:

“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.”

Renovation costs and prior referral

The Federal Reserve has described the project as the first renovation of the Eccles and 1951 Constitution Avenue buildings since the 1930s, including health and safety work such as asbestos and lead removal.

The Fed has forecast the renovation at $2.5 billion, while Trump has claimed it will cost $3.1 billion.

In July 2025, Trump toured the renovation site with Powell, with both wearing white hard hats.

Later that month, Rep. Anna Paulina Luna, R-Fla., sent the DOJ a criminal referral alleging Powell made false statements to the Senate Banking Committee about the project.

Responses from DOJ, Trump, and lawmakers

An Attorney General Pam Bondi spokesperson told ABC News the DOJ is prioritizing investigations into potential abuse of taxpayer dollars.

A spokesperson for the U.S. Attorney’s Office in Washington, D.C., said it does not comment on ongoing investigations.

Trump told NBC News he did not know about the investigation and criticized Powell’s performance.

Powell’s term as Fed chair ends in May, though he remains on the Board of Governors until 2028.