Washington: The U.S. Federal Reserve confirmed late Sunday that federal prosecutors are investigating Fed Chair Jerome Powell concerning the central bank's multi-billion-dollar project to renovate its headquarters. In a public statement posted on the Federal Reserve's website, Powell mentioned that the Department of Justice served the Fed with grand jury subpoenas on Friday, "threatening a criminal indictment related to my testimony before the Senate Banking Committee last June. That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings."

According to Namibia Press Agency, Powell described the investigation as "unprecedented" and linked it to broader political pressures from the current administration. He stated, "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 emphasized the importance of the Fed's independence in setting monetary policy based on evidence and economic conditions rather than succumbing to political pressure or intimidation.

Powell further highlighted his commitment to his role, asserting, "I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people." The investigation is being overseen by the U.S. Attorney's Office for the District of Columbia, as reported by local media.

Since assuming office in January 2025, U.S. President Donald Trump has consistently criticized Powell for not reducing interest rates as aggressively as he desired. Powell, first appointed as Fed chair by Trump in 2018 and reappointed by former President Joe Biden in 2022, is currently serving a term set to expire in May 2026.