The Department of Justice is threatening to indict Federal Reserve Chairman Jerome Powell over testimony delivered to Congress last year concerning renovations of the Fed’s headquarters in Washington, D.C., Powell announced today in a video statement.
According to Powell, the Fed was served grand jury subpoenas on Friday relating to his testimony to the Senate Banking Committee in June 2025 on the renovations, which have come under fire for cost overruns. Powell said he is not 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. 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.”
Powell said he will continue to serve as Fed chairman. The White House did not immediately comment on Powell’s statement.
President Trump, who appointed Powell chairman in 2018, has called on the Fed to dramatically lower the federal funds rate and attempted to reshape the Fed board by firing Governor Lisa Cook. The latter has been paused by the courts, with the Supreme Court to consider the case later this year.
