On January 11, 2026, Federal Reserve Chair Jerome Powell announced that the U.S. Department of Justice (DOJ) had issued a subpoena to the Federal Reserve, potentially leading to a criminal indictment. This action is viewed as part of a sustained campaign of pressure from the Trump administration. Powell indicated that the threat of indictment is linked to his testimony before the Senate regarding the renovation of Federal Reserve office buildings.

Powell emphasized that no individual, including the chair of the Federal Reserve, is above the law, but he described this unprecedented move as reflective of ongoing threats and pressures from the administration. He expressed his intention to remain in his role, despite President Donald Trump's repeated calls for his resignation, and reaffirmed his commitment to serving the American public with integrity.

The White House has accused Powell of mismanagement related to the renovation project, alleging that he misled Congress about the plans for the Federal Reserve's headquarters. In response to Trump's criticisms regarding cost overruns, the Federal Reserve initiated a review by its inspector general. Powell noted that the renovation plans have evolved over time, indicating a complex situation surrounding the project.

The U.S. attorney's office in the District of Columbia has begun a criminal investigation into Powell, focusing on whether he provided misleading information to Congress regarding the extent of the renovation. This inquiry includes a review of Powell's public statements and an analysis of spending records, authorized in November by Attorney Jeanine Pirro.

Federal prosecutors are specifically examining the $2.5 billion renovation of the Federal Reserve's headquarters in Washington, D.C. Powell has characterized the investigation as a "pretext" arising from ongoing tensions with the Trump administration over interest rate policies. He stated that the investigation reflects broader threats and pressures from the administration.

The implications of this inquiry could be significant for Powell and the future leadership of the Federal Reserve, especially as Trump has publicly criticized Powell's management of interest rates, suggesting that the president should have influence over such decisions. The independence of the Federal Reserve is traditionally valued by investors and economists, as it allows for long-term economic planning rather than short-term political considerations.

Powell asserted that the threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on economic assessments rather than political preferences. He emphasized the importance of maintaining monetary policy grounded in economic evidence rather than succumbing to political intimidation.

The Justice Department has not commented on the specifics of the investigation but has indicated a commitment to investigating potential misuse of taxpayer funds. As the investigation unfolds, Trump is expected to announce his choice for Powell's successor, concluding a lengthy selection process for a position that holds significant influence over the global economy.