DOJ Opens Criminal Investigation Into Fed Chair Powell
Jerome Powell suggests the probe is about interest rates—not his testimony or renovation.

Federal Reserve Chair Jerome Powell said the U.S. central bank was served with grand jury subpoenas by the Department of Justice on Jan. 9.

In a statement late Jan. 11, Powell confirmed that officials threatened a criminal indictment over his Senate Banking Committee testimony in June 2025. That testimony, Powell noted, “concerned in part a multi-year project to renovate historic Federal Reserve office buildings.”

The central bank chief dismissed the idea that this criminal probe was driven by his testimony or the renovation.

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

“Those are pretexts,” he continued. “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.”

His remarks came hours after reports surfaced that federal prosecutors opened an inquiry into Powell.

Last summer, the Fed was under fire over renovations of its headquarters in Washington. The president and administration officials lambasted the institution for overspending on the Marriner S. Eccles Building on the National Mall and 1951 Constitution Avenue.

Trump, alongside Powell, toured the construction site in July 2025. The two men disagreed on the cost-overrun estimates.
When the renovation project was approved in 2017, the budget was $1.9 billion. It has since increased to $2.5 billion because of inflation, asbestos and soil contamination, and extended timelines. Trump noted that the price tag rose by an additional $600 million.

“I’m not aware of that, Mr. President. I haven’t heard that from anybody at the Fed,” Powell told Trump in front of reporters.

In addition to the renovations, Trump has long complained that Powell and his colleagues have not lowered interest rates more aggressively, like other central banks in advanced economies.

While the Fed has reduced rates by 75 basis points since September, Trump told The Wall Street Journal in December 2025 that the benchmark federal funds rate—a key policy rate that influences business and household borrowing costs—should be “1 percent and maybe lower than that.”
Powell’s term expires in May.

A search for his successor is still underway, with Treasury Secretary Scott Bessent telling the Economic Club of Minnesota earlier this week that the president will make his decision sometime this month.
Predictive markets suggest that former Fed Gov. Kevin Warsh is now the favorite at 44 percent odds, surpassing National Economic Council Director Kevin Hassett.
The Supreme Court will also hear oral arguments on Jan. 21 in the case of Fed Governor Lisa Cook and whether the president maintains the power to terminate a member of the Board of Governors for any reason.

This past summer, Trump attempted to fire Cook over allegations of mortgage fraud. The high court temporarily blocked the president from firing her, allowing Cook to stay in her position.

U.S. stocks turned negative in futures trading following the announcement, with the leading benchmark indexes down across the board.

The U.S. Dollar Index fell more than 0.2 percent, while yields on Treasury securities were mixed.


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I just had to chuckle from this line in the Fox news article on the subject

The renovation of the Federal Reserve's two main office buildings in Washington’s Foggy Bottom neighborhood is estimated to cost $2.5 billion and is being funded by the central bank itself, not by taxpayers.

While technically this is correct, when the great economic reckoning occurs, I'm sure the Fed's Balance Sheet will be included in the tally.

Federal Reserve Chair Powell under criminal investigation over HQ renovation

I have noted before that even with 90 years' inflation taken into account, the whole of the Empire State Building from scratch cost less than renovations on this single, much smaller building.

It's hard to imagine spending 2.5 billion to renovate a couple buildings. They must be using the Palace at Versailles as a design model.

They aren't going to charge Powell with anything. This is just a public kick in the ass as he leaves.

From the Congresswoman who actually sent the referral to DOJ:
https://x.com/RepLuna/status/2011115658998657133?s=20



The above video jives with her July '25 Tweet where she said she sent the referral to DOJ:
https://x.com/RepLuna/status/1947381964652048742?s=20

Jeanine Pirro, U.S. attorney for the District of Columbia, said on Jan. 13 that Federal Reserve Chair Jerome Powell could have avoided a Department of Justice probe if the central bank “had just responded to our outreach.”

In a Jan. 13 statement on X, Pirro said the U.S. Attorney’s Office had repeatedly contacted the Fed about cost overruns and Powell’s June testimony before the Senate Banking Committee.
Those inquiries, she added, “were ignored, necessitating the use of legal process—which is not a threat.”

“The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s,” Pirro stated. “None of this would have happened if they had just responded to our outreach. This office makes decisions based on the merits, nothing more and nothing less.”

“We agree with the chairman of the Federal Reserve that no one is above the law, and that is why we expect his full cooperation.”

Powell revealed over the weekend that the Justice Department had served grand jury subpoenas to the Fed on Jan. 9 and threatened a criminal indictment.
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The probe by federal prosecutors, according to Powell, related to his congressional testimony this past summer when he spoke to lawmakers about $2.5 billion renovations to the central bank headquarters.

In his Jan. 11 video statement, Powell described them as “pretexts” and that they should be viewed “in the broader text of the administration’s threats and ongoing pressure.”

President Donald Trump said he didn’t know about the investigation into Powell.

“He’s billions of dollars over budget,” the president told reporters before boarding Air Force One on Jan. 13. “So, he either is incompetent, or he is crooked. I don’t know what he is, but he certainly doesn’t do a very good job.”

When the comprehensive overhaul was approved in 2017, the budget was set at $1.9 billion.
It was later adjusted to $2.5 billion due to rising labor and material costs, as well as asbestos and soil contamination, and extended construction timelines.

This has become one of the most expensive buildings in Washington’s history, says National Economic Council Director Kevin Hassett, and Powell should welcome transparency.

“If I were Fed chair, I would want them to do that. I think that it’s really important to understand where the taxpayer money goes and understand why it goes this way or that,” he said on Jan. 12.

Former Fed Chairs Ben Bernanke, Alan Greenspan, and Janet Yellen co-signed a statement—along with 13 other economic officials—defending Powell and slamming “prosecutorial attacks.”

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