Federal prosecutors in Washington, D.C. have begun a criminal investigation into Federal Reserve Chair Jerome Powell, according to a report by Reuters. The case involves renovations to the headquarters of the Fed and whether Powell provided honest testimony to Congress.
Powell commented on the developments through a video recording that the Federal Reserve made public on Sunday, January 11, 2026. Powell noted that on Friday, January 9, the Justice Department had handed the nation’s central bank grand jury subpoenas. Powell revealed that the Justice Department officials “are threatening a criminal indictment” for comments that he made to the Senate Banking Committee in June last year regarding the renovation of the country’s historic Fed office buildings.
He emphasized his “respect for the rule of law” and “efforts made by Congress through oversight,” but added that “these subpoenas are unprecedented.” He described the legal pressure “not about my testimony or the renovation project,” which he termed “pretexts,” but connected it “with decisions about interest rates at the Fed.
Earlier, in a document independent of the current case, the breadth of the restoration work had been described in a letter dated July 17, 2025, by Powell, addressed to OMB Director Russell T. Vought, and made publicly available through FOIA by the Federal Reserve FOIA release. This letter described the work as relating to “two 1930s buildings, extensive repairs, removal of asbestos and lead, and upgrades of outdated systems, including electrical, plumbing, HVAC, and fire suppression systems.”
Powell also responded to specific claims. “The project does not include ‘VIP dining rooms’ or ‘VIP elevators’; the proposed ‘water features’ are no longer included in the project. Any original marble from the exterior is being retained and reinstalled. Additional domestic marble is being used as necessary to complete preservation goals.” The Fed inspector general had complete access to information about the project, and Powell requested an independent assessment.
The ongoing dispute between President Donald Trump and Powell with regards to the Fed’s interest rate policies has intensified with Powell labeling the subpoenas as part of an effort “to force the Federal Reserve to set rates based not on economic reality but based upon the preferences of the President.”
