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Federal Reserve Chair Jerome Powell said Sunday that the Justice Department has served the central bank with subpoenas and threatened it with a criminal indictment tied to his testimony about the Federal Reserve’s costly building renovation project.
In a video statement, Powell said the threat of criminal charges amounted to an attempt to pressure the Fed over its interest rate decisions.
“I have deep respect for the rule of law and for accountability in our democracy,” Powell said. “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. This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” he continued.
President Trump, speaking to reporters Sunday night aboard Air Force One as he returned to Washington, dismissed Powell’s leadership.
“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,” the president said.
According to The New York Times, the inquiry was approved in November by Pirro and is examining Powell’s public testimony and Federal Reserve spending records related to the renovation. The project is now estimated to be $700 million over budget, with total costs nearing $2.5 billion, the Times reported.
The investigation centers on renovations that began in 2022 to the Fed’s historic Washington buildings, including asbestos removal, accessibility improvements, and modernization work. Powell has previously denied allegations that the project included luxury features such as private dining rooms, special elevators, or new marble, saying earlier plans were revised and scaled back.
The Fed has said cost overruns were driven by higher labor and material costs, as well as unexpected contamination.
The probe adds to the ongoing controversy between the president and Powell. President Trump has repeatedly criticized the Fed chair for resisting calls to sharply cut interest rates, has threatened to fire him and has said he has already selected a successor. Kevin Hassett, Trump’s top economic adviser, has been mentioned as a leading contender.
Powell’s term as Fed chair ends in May, though his term as a member of the Federal Reserve Board runs through January 2028.