Fed Chair Powell says he’s under criminal investigation, won’t bow to Trump intimidation

Federal prosecutors have opened a criminal investigation into Federal Reserve Chairman Jerome Powell, he confirmed in a statement Sunday evening.

Powell said the investigation was the result of the Fed “setting interest rates based on our best assessment of what will serve the public, rather than following President Donald Trump’s preferences.”

“This is about whether the Fed can continue to set interest rates based on evidence and economic conditions, or whether monetary policy will instead be driven by political pressure or intimidation,” he said in a video statement tweeted by the Fed’s X account.

“The Justice Department served grand jury subpoenas to the Federal Reserve threatening criminal charges related to my testimony before the Senate Banking Committee last June,” Powell said Friday.

“This statement was in part related to a multi-year project to renovate historic Federal Reserve office buildings,” he said.

“I have deep respect for the rule of law and accountability in our democracy. No one, least of all the Fed chairman, is above the law, but this unprecedented action, the administration’s threats and ongoing pressure, must be seen in the broader context,” Powell said. he said.

“No one, especially the head of the Central Bank, is above the law,” he said.

“But this unprecedented action must be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said. he said.

“This new threat is not about my testimony last June or the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role; the Fed has made every effort to keep Congress informed about the renovation project through testimony and other public statements. These are pretexts.”

The New York Times first reported The investigation was conducted based on officials briefing on the subject.

According to the newspaper, the investigation is being overseen by the U.S. Attorney’s Office for the District of Columbia.

That office is led by U.S. Attorney Jeanine Pirro, a former New York state prosecutor and Fox News host who was appointed to the post by Trump.

Trump has repeatedly criticized Powell since entering the White House in January 2025 for the Fed’s failure to cut interest rates as much and as quickly as the president requested.

Sen., a North Carolina Republican and member of the Senate Banking Committee. Thom Tillis criticized the investigation into Powell, saying he would oppose replacing Powell with Trump or any other Fed Board nominee “until this legal matter is fully resolved.”

“If there was any doubt left about whether advisors within the Trump Administration were actively pushing to end the independence of the Federal Reserve, there should be no doubt now,” Tillis said in a statement. he said.

“What is at stake now is the independence and credibility of the Department of Justice,” the senator said.

Brian Jacobsen, chief economic strategist -most “President Trump is seeking to pursue criminal charges against Powell regarding his testimony before Congress regarding the renovation of the Federal Reserve headquarters,” Annex Wealth Management wrote in a note to clients on Sunday.

“Powell may protest by staging a sit-in. His term as president expires in May, but his term as governor does not end until January 2028,” Jacobesen wrote.

“Due to political pressure on the Fed, he may choose to remain chairman out of spite. This would deprive President Trump of the ability to fill the board with another candidate,” Jacobsen wrote. “Stephen Miran’s term expires in January 2026, and that may be the only vacancy Trump can fill. It would be unusual for Powell to remain in office, but everything is unusual these days.”

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