U.S. Justice Department opens criminal probe into Fed Chair Jerome Powell

U.S. federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome H. Powell, a rare escalation involving the leader of the nation’s central bank. The inquiry, conducted by the U.S. Attorney’s Office for the District of Columbia, centers on whether Powell may have made false or misleading statements during his June testimony before the Senate Banking Committee about the Federal Reserve’s multi-billion-dollar renovation of its Washington, D.C., headquarters.

Powell confirmed that the Department of Justice (DOJ) served the Federal Reserve with grand jury subpoenas and threatened a criminal indictment over that testimony. He described the action as “unprecedented,” asserting that it was being used to exert political pressure amid clashes over interest rate policy — particularly former President Donald Trump’s repeated demands for faster rate cuts.

In a public statement, Powell emphasized the importance of Federal Reserve independence, saying the threat of criminal charges stemmed from the central bank’s decisions based on economic conditions rather than political preferences. He pledged to continue fulfilling his role despite the legal scrutiny.

The investigation has drawn attention across political and financial circles, with critics warning it could undermine confidence in the Federal Reserve and inject uncertainty into markets. No formal charges have been filed yet, and the probe remains active as authorities review Powell’s public statements and related documents.