In a rare escalation of a months-long assault on the independence of the Federal Reserve, federal prosecutors have launched a legal investigation into Federal Reserve Chair Jerome Powell, he confirmed in a press release Sunday evening.
The investigation is said to Powell’s testimony earlier this 12 months concerning the multi-year renovation of the Federal Reserve buildings, Powell stated in a video message launched by the Fed.
However Powell says it’s clear the investigation is in the end a part of President Donald Trump’s administration’s more and more hostile push to strain the Fed to decrease rates of interest.
Federal Reserve Chair Jerome Powell speaks as he holds a press convention following a two-day assembly of the Federal Open Market Committee on the U.S. Federal Reserve in Washington, December 10, 2025.
Kevin Lamarque/Reuters
“That is about whether or not the Fed will be capable of proceed to set rates of interest based mostly on proof and financial situations — or whether or not as a substitute financial coverage can be directed by political strain or intimidation,” Powell stated.
In a press release to ABC Information, a spokesperson for Lawyer Normal Pam Bondi stated, “The Lawyer Normal has instructed her U.S. Attorneys to prioritize investigating any abuse of taxpayer {dollars}.”
Tim Lauer, a spokesman for D.C. U.S. Lawyer Jeanine Pirro, instructed ABC Information in a press release, “We don’t touch upon ongoing investigations.”
Trump denied any involvement within the legal investigation throughout a short interview with NBC Information on Sunday evening.
“I don’t know something about it, however he’s definitely not excellent on the Fed, and he’s not excellent at constructing buildings,” Trump stated.
The president famous Federal Reserve rates of interest, saying, “What ought to strain him is the truth that charges are far too excessive. That’s the one strain he’s obtained,” Trump stated, in response to NBC Information. “He’s damage lots of people,” he added. “I believe the general public is pressuring him.”
In July, Trump visited the Federal Reserve constructing, repeating requires decrease rates of interest whereas standing alongside Powell.
Donning matching white laborious hats, Trump and Powell took a tour of the central financial institution’s $2.5 billion constructing renovation challenge on the time. Trump had repeatedly slammed Powell for price overruns tied to the renovation.
The Fed attributes spending overruns to unexpected price will increase, saying that its constructing renovation will in the end “cut back prices over time by permitting the Board to consolidate most of its operations,” in response to the central financial institution’s website.
WASHINGTON, DC – JULY 24: U.S. President Donald Trump and Federal Reserve Chair Jerome Powell tour the Federal Reserveâs $2.5 billion headquarters renovation challenge on July 24, 2025 in Washington, DC. The Trump administration has been crucial of the price of the renovation and Federal Reserve Chairman Jerome Powell. (Picture by Chip Somodevilla/Getty Photographs)
Chip Somodevilla/Getty Photographs
After a tour of the renovation, Trump answered questions from the press whereas standing subsequent to Powell. Throughout one alternate, Trump claimed the prices of the renovation had been even larger than beforehand identified, earlier than Powell instantly corrected him, saying Trump had wrongly included prices from a challenge accomplished years earlier.
Later that month, Home Republican Rep. Anna Paulina Luna of Florida initially despatched the DOJ a legal referral in opposition to Powell over his testimony to the Senate Banking Committee.
Luna accused Powell on the time of creating false statements to the committee concerning the central financial institution’s renovation at its headquarters.
Sen. Thom Tillis, R-N.C., who serves on the Banking Committee, launched a press release on X Sunday evening, saying, “If there have been any remaining doubt whether or not advisers throughout the Trump Administration are actively pushing to finish the independence of the Federal Reserve, there ought to now be none.”
The lawmaker stated he would “oppose the affirmation of any nominee” for the Federal Reserve, together with the upcoming chair place, till this authorized matter is totally resolved.”
Powell’s time period as Fed chair ends in Might, however he’ll stay a member of the Federal Reserve’s Board of Governors till 2028.
