Jerome Powell faces criminal investigation by DC federal prosecutors

WASHINGTON, DC: Federal prosecutors in Washington, DC, have opened a criminal investigation into Federal Reserve Chair Jerome Powell, according to US media reports and Powell’s public remarks.

The probe focuses on the Federal Reserve’s multiyear headquarters renovation and whether Powell misled Congress about the scope and cost of the project.

US Attorney’s Office probes Jerome Powell over Fed renovation

The investigation is being conducted by the US Attorney’s Office for the District of Columbia. Prosecutors are reviewing Powell’s congressional testimony and internal Federal Reserve records tied to the Washington headquarters renovation.

Officials told The New York Times that the probe was authorized in November 2025 by Jeanine Pirro, appointed to lead the office and known as a close ally of President Donald Trump. The authorization reportedly followed scrutiny over how the renovation was presented to lawmakers.

It is unclear if a grand jury has been convened or if subpoenas have been issued, though Powell’s staff have been contacted multiple times to provide documents. Neither the Department of Justice nor the Federal Reserve has issued an official statement confirming the criminal investigation.

Political tensions add context to the investigation

The probe adds a legal dimension to President Donald Trump’s ongoing clash with the Federal Reserve. Trump has repeatedly criticized Powell for resisting pressure to cut interest rates and has publicly discussed the possibility of removing him from office, despite having nominated Powell in 2017.

Trump has also questioned the $2.5 billion renovation, describing it as an example of incompetence. Powell, in a video message, suggested the investigation is part of a broader push to pressure the Federal Reserve, raising concerns about political influence on monetary policy decisions. 

Powell said the probe raised larger questions about whether the central bank could continue setting interest rates based on economic data rather than political pressure.

DOJ yet to publish official statement confirming criminal investigation

Neither the Department of Justice nor the Federal Reserve has issued an official statement confirming the criminal investigation into Jerome Powell. While the US Attorney’s Office in DC is actively reviewing Powell’s testimony and related documents, no public confirmation or formal announcement has been made. 

A spokesperson for Attorney General Pam Bondi told ABC News that US attorneys were instructed to prioritize investigations involving potential misuse of taxpayer funds, but did not directly comment on Powell’s case.