Powell Addresses DOJ Criminal Investigation into Fed Renovations

• Jerome Powell said DOJ subpoenas over Fed renovations followed rate policy disputes, raising concerns over central bank independence.
• Powell stated the $2.5B renovation was fully disclosed and called the investigation an unprecedented form of political pressure.
• Senate Banking Committee member Thom Tillis warned the probe could undermine DOJ independence and Fed leadership stability.

Federal Reserve Chair Jerome Powell addressed a criminal investigation Sunday after federal prosecutors issued grand jury subpoenas to the central bank. The inquiry followed his June Senate testimony on a $2.5 billion renovation project. Powell spoke from Washington, saying the issue arose Friday and centers on Federal Reserve independence and interest rate decisions.

According to Powell, the Department of Justice served subpoenas tied to testimony before the Senate Banking Committee last June. That testimony discussed renovations of historic Federal Reserve buildings in Washington, D.C.

The project spans several years and carries an estimated $2.5 billion cost. However, Powell said the probe does not concern disclosure failures or congressional oversight. He said the Fed provided repeated public updates and testimony.

Instead, Powell described the renovation issue as a pretext for broader pressure. Powell released his remarks in a recorded statement posted Sunday evening on the Federal Reserve’s X account. He said no public official stands above the law.

Still, he described the subpoenas as unprecedented. According to CNBC, the U.S. Attorney’s Office for the District of Columbia is overseeing the investigation. The office is led by Jeanine Pirro, appointed by President Donald Trump.

Powell said the threat of criminal charges followed disagreements over interest rate policy. He stated the Fed sets rates using economic data and public interest assessments. He said political preferences should not influence monetary policy.

He added that the dispute reflects pressure from the administration. President Trump has publicly criticized Powell since taking office in January 2025. Trump has also questioned the renovation project and interest rate levels.

Speaking to NBC News on Sunday, Trump said he knew nothing about the investigation. However, he again criticized Powell’s performance.

Reaction followed quickly on Capitol Hill. Senator Thom Tillis of North Carolina expressed concern about the investigation’s implications. Tillis serves on the Senate Banking Committee, which oversees Federal Reserve leadership.

Tillis said he would block future Fed nominees until the matter concludes. He said the episode raises questions about Justice Department independence.

Meanwhile, a DOJ spokesperson said prosecutors were instructed to prioritize cases involving taxpayer funds. The statement did not mention Powell directly. Powell said he will continue serving as Fed chair. He said he will perform duties the Senate confirmed him to carry out.