Jerome Powell says he is under US criminal investigation

US Federal Reserve Chair Jerome Powell on Sunday said Donald Trump 's administration has opened a criminal investigation into him in a significant escalation of the President's attack on the central bank. The criminal inquiry from the Department of Justice stems from testimony Mr Powell gave in June 2025 before the US Senate on remarks the central bank chief said over the Fed's renovation project. In a rare video statement, Mr Powell said the investigation was another attempt by Mr Trump's administration to pressure the Fed to lower interest rates. “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,” Mr Powell said in a statement. Mr Trump has relentlessly attacked Mr Powell and the broader Federal Reserve for not aggressively lowering rates since returning to office last January. The Fed thus far has bucked that pressure from the White House, lowering rates by a cumulative 75 basis points in its final three meetings of 2025 amid signs of a weakening labour market. The Fed's renovation projects surfaced as a flashpoint during Mr Trump's efforts to exert control over it last year, culminating in an almost unprecedented visit by the President to the central bank last year. Mr Powell said the Justice Department on Friday served the Fed with grand jury subpoenas. He also rejected the idea that the investigation was about the Fed's $2.5 billion renovation project. “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,” he said in a statement. The Department of Justice did not immediately respond to The National 's request for comment. Mr Trump told the New York Times last week that he has decided who he wants to replace Mr Powell as Fed chair when his term expires in May. Mr Powell has so far offered no clues on if he will remain as a governor on the Federal Reserve's board, which runs another two years. Mr Trump told NBC News he did not know about the probe into Mr Powell, although again attacked the central bank chief as being "not being very good at the Fed". Mr Trump also told the outlet he "wouldn't even think of doing it that way," when asked if the subpoenas were a method to pressure the Fed to lower interest rates, although he also said interest rates remain too high. Republican US Senator Thom Thillis, a member of the Senate banking committee, said in a statement he would oppose the confirmation of any nominee for the Fed - including the upcoming vacancy for Fed chair - until the legal matter is resolved. "If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none," he said. The criminal inquiry highlights a broad attack by Mr Trump on the Fed, including an effort to oust Fed Governor Lisa Cook over allegations of mortgage fraud. It is understood that presidents are only able to fire Fed officials “for cause”, which generally means malfeasance or a dereliction of duty. Stock futures slid after it was announced Mr Trump's administration was opening a criminal inquiry into the Fed chair, with Dow futures trading 0.42 per cent lower. The US dollar index was trading 0.18 per cent lower.

Jerome Powell says he is under US criminal investigation

Fed chair accuses inquiry into Fed renovation projects as pressure to lower interest rates