Federal Reserve Chair Jerome Powell issued a statement confirming that the Department of Justice has served the central bank with grand jury subpoenas, threatening him with criminal indictment in what he characterized as a politically motivated attack on the Fed's independence. The announcement marks another significant escalation in tensions between the White House and the Federal Reserve.

DOJ Investigation Details

Powell revealed through the Federal Reserve's official website that the subpoenas were served on Friday and primarily relate to testimony he provided before the Senate Banking Committee in June regarding the renovation of the Fed's historic Washington headquarters. The investigation reportedly focuses on whether Powell misled Congress about the scope and cost of the renovation project.

Powell's Response and Defense

Powell was swift to reject the allegations, framing them as part of a broader campaign of intimidation by political powers. He emphasized that the threat of criminal charges stems from the Federal Reserve's commitment to setting interest rates based on economic evidence rather than presidential preferences.

"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 stated. He added that the investigation centers on "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."

Political Context and Administration Tensions

The DOJ action occurs amid rising tension between the White House and the central bank, with Trump frequently criticizing Powell for maintaining interest rates higher than the administration prefers. The President has argued that the Fed's interest rate policy has stifled economic growth and has resorted to public insults directed at the Fed Chair.

The investigation has drawn scrutiny from Republican lawmakers, including Representative Anna Paulina Luna, who have questioned Powell's testimony regarding the renovation project's scope and costs.

Powell's Commitment to Continue

Despite the criminal probe, Powell, who has served under four administrations, vowed to remain in his position. "I will continue to do the job the Senate confirmed me to do," he declared. "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."

The Department of Justice has not yet provided comment on the specific charges or details of the investigation. The situation represents an unprecedented challenge to Federal Reserve independence and raises questions about the intersection of monetary policy and political pressure.

Federal Reserve Chair Jerome Powell made a striking revelation on Sunday, disclosing that the Trump administration has threatened him with criminal indictment over testimony he provided to Congress last summer. The dramatic announcement represents a significant escalation in the ongoing tensions between the central bank leadership and the White House.

DOJ Serves Grand Jury Subpoenas

Powell revealed that the Department of Justice served the Federal Reserve with grand jury subpoenas on Friday, threatening criminal charges related to his testimony before the Senate Banking Committee in June. The testimony in question concerned a Federal Reserve building renovation project, which Powell described as merely a "pretext" for applying additional pressure on the central bank.

"On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June," Powell stated in his Sunday announcement.

Escalating Fed-White House Tensions

The current dispute marks a dramatic intensification of the conflict between Powell and the Trump administration that has persisted since Powell's early years as Fed chair beginning in 2018. Powell characterized the administration's actions as an attempt to pressure the Federal Reserve into lowering interest rates, suggesting the building renovation testimony serves as a convenient justification for broader political pressure.

Powell's Response

Despite the unprecedented nature of the threat, Powell emphasized his respect for legal processes and democratic accountability. "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," he stated in the brief announcement released by the Fed late Sunday.

The Federal Reserve chair's measured response underscores the delicate balance he must maintain between defending the central bank's independence and acknowledging the legitimacy of legal oversight. The White House has not yet responded to requests for comment regarding the situation.

Implications for Federal Reserve Independence

This development raises significant questions about the independence of the Federal Reserve and the appropriate boundaries between executive branch oversight and central bank autonomy. The timing and nature of the DOJ action, particularly its connection to interest rate policy pressure, suggests broader implications for monetary policy decision-making processes.