The Federal Reserve and its chairman, Jerome Powell, have been hit with grand jury subpoenas by the Department of Justice, posing the threat of a criminal indictment over Senate Banking Committee testimony given by Powell in June regarding a renovation of the Fed’s historic headquarters.
Powell revealed the DOJ subpoenas, which he said were issued Friday, in a rare video statement posted to the Federal Reserve website Sunday.
In the brief video address, Powell alleged that the office renovation uproar was being used as a pretext, and that he and the Fed were being targeted based on setting benchmark interest rates at a higher level than that preferred by President Donald Trump.
“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 stated.
The DOJ did not immediately respond to Scotsman Guide’s request for comment.
The Fed chair was scrutinized by Trump and top administration officials following his Senate testimony, in which he addressed concerns over cost overruns for the renovation project, which was originally budgeted at $1.9 billion but swelled to an estimated $2.5 billion.
During his testimony, Powell criticized media reports about overly luxurious office upgrades as being “misleading and inaccurate in many, many respects,” but said, “notwithstanding that, the cost overruns are what they are.”
The Fed subsequently published an FAQ page on its website addressing the cost overruns, which the central bank attributed to design changes mandated by review agencies; the rising costs of materials, equipment and labor; and unforeseen construction conditions, such as contaminated soil and more asbestos remediation than anticipated.
The alleged construction boondoggle was publicized amid a relentless pressure campaign by Trump, who attempted to cajole Powell and his fellow policymakers to lower interest rates, which Trump claimed were too high and were putting the U.S. at an economic disadvantage.
At various turns, Trump threatened to fire Powell, summoned him to the Oval Office for a face-to-face conversation, and wrote a rare hand-written note to the Fed chair imploring him to cut rates.
Most recently, during a press conference at his Mar-a-Lago resort in December, Trump accused Powell of “gross incompetence” and said the administration is “going to probably bring a lawsuit against him.”
With the reported issuance of grand jury subpoenas, it appears that threat has become a reality, though Trump denied any knowledge of the DOJ investigation in a phone interview with NBC News on Sunday night.
“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,” Trump said, according to NBC.
Trump also denied that the DOJ subpoenas were related to monetary policy, according to NBC.
“No. I wouldn’t even think of doing it that way. What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got,” Trump said, per the report.
During multiple public appearances throughout 2025, Powell generally dodged questions about the president’s attack campaign and preferred to focus squarely on monetary policy. His Sunday evening statement represents his most forceful pushback against the Trump administration to date.
“I have served at the Federal Reserve under four administrations, Republicans and Democrats alike,” Powell said, looking directly into the camera. “In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment.”
Powell concluded: “Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”
