President Donald Trump has denied any involvement in the Justice Department's investigation targeting Federal Reserve Chair Jerome Powell, stating he was unaware of the subpoenas issued over the weekend. The investigation centers on Powell's June testimony before the Senate regarding renovation costs at Federal Reserve office buildings.

Investigation Details and Trump's Response

Trump told NBC News he had no knowledge of the Justice Department's actions, saying "I don't know anything about it." However, he continued his criticism of Powell's leadership, particularly regarding interest rate policies and their economic impact.

The subpoenas are tied to Powell's testimony about Federal Reserve office building renovation expenses. Powell confirmed that the Justice Department had raised the possibility of criminal action, describing this as an unprecedented step for a Federal Reserve chair.

Powell Cites Political Pressure

Powell responded to the investigation by highlighting what he characterized as sustained pressure from the White House. In a video message, he stated that while no one is above the law, including the Federal Reserve chair, the unprecedented action should be viewed in the broader context of administration threats and ongoing pressure.

Powell emphasized that the Federal Reserve sets interest rates based on economic conditions rather than political preferences. He suggested the possibility of criminal charges appeared linked to the central bank's independent stance on monetary policy.

Congressional Response

The investigation has prompted bipartisan criticism from lawmakers concerned about Federal Reserve independence:

• Senator Thom Tillis (R-NC): Announced he would block confirmations of Trump nominees for the Federal Reserve until the matter is resolved
• Senator Elizabeth Warren (D-MA): Accused the administration of misusing federal authority to influence the central bank

Senator Tillis wrote that any remaining doubt about Trump Administration advisers actively pushing to end Federal Reserve independence should now be eliminated. Warren characterized the actions as abuse of law to serve Trump and his associates.

Agency Responses and Background

The White House declined to comment, directing questions to the Justice Department. A department spokesperson told NBC News that the agency does not comment on specific cases but prioritizes investigations into potential misuse of public funds.

The Federal Reserve operates independently of taxpayer funding, generating revenue through service fees, loans, and investment income. The US attorney's office in Washington is handling the investigation but has declined to comment.

Trump has previously called for legal action against various political figures, including James Comey, Adam Schiff, and New York Attorney General Letitia James. Powell's current term as Fed chair concludes in May, while his Board of Governors seat extends through 2028.

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.