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U.S. Federal Reserve Chair Jerome Powell announced Monday that the U.S. Department of Justice (DOJ) has threatened a criminal indictment against him related to the Fed's headquarters renovation project, calling it a "pretext" by the Trump administration to pressure the central bank on interest rate policy.
"On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June," Powell said in a video statement released by the Fed.
"That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings," Powell said.
Powell said the new threat is not about his testimony or about the renovation of the Federal Reserve buildings.
"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 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 added.
Federal Reserve Chair also framed the investigation as an assault on the Fed's independence, saying, "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."
Powell emphasized his respect for the rule of law while noting the broader context of the administration's actions.
"I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law. But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure," he stated.
Powell added that he has served at the Federal Reserve under four administrations, Republicans and Democrats alike, noting, "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."
"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," he said.
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The investigation relates to Powell's testimony before Congress last summer about a $2.5 billion renovation of the Federal Reserve's headquarters, according to reports.
Powell's term as Fed chair ends in about four months.
The investigation comes as U.S. President Donald Trump has repeatedly attacked Powell, calling him a "stubborn mule" for declining to slash borrowing costs.
Trump has pressured the Fed to lower interest rates, while Powell has maintained that the central bank's decisions should be based on economic evidence rather than political preferences.
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