Powell Says Justice Department Served Fed With Grand Jury Subpoenas

Federal Reserve Chair Jerome Powell said Sunday that the Justice Department has served the central bank with grand jury subpoenas, in an investigation that he said threatens a criminal indictment tied to his testimony to the Senate Banking Committee last June. Powell disclosed the subpoenas in a video statement, which The American Conservative described as posted on X on Sunday evening.

According to CBS News, the Fed received the subpoenas on Friday. They relate to Powell’s June 2025 testimony, which partly concerned a multi-year renovation of historic Fed office buildings. Powell called the action “unprecedented” and said the stated reasons were “pretexts.” In his account, the real issue is that the Fed sets interest rates on its own assessment of the economy rather than following the president’s preferences. “No one — certainly not the chair of the Federal Reserve — is above the law,” he said, adding that he has served under four administrations and will keep doing the job the Senate confirmed him to do.

The renovation has been a political target. Budget Director Russell Vought had accused Powell of leading an “ostentatious” project that may have violated the law, CBS reported, and Powell disputed claims about features such as new marble, special elevators and rooftop gardens in his testimony.

The administration’s side was laid out by prosecutors. U.S. Attorney Jeanine Pirro said on X that her office had repeatedly tried to discuss cost overruns and Powell’s testimony with the Fed, was ignored, and then used legal process; she added that the word “indictment” came from Powell, according to CBS. A Justice Department spokesperson said Attorney General Pam Bondi had told prosecutors to prioritize investigating abuse of taxpayer dollars, without citing a specific case.

President Donald Trump told NBC News he did not know about the probe and criticized Powell’s management of the Fed and of its building projects; The American Conservative quoted him as saying Powell is “not very good at the Fed.” National Economic Council Director Kevin Hassett said he respects the independence of both the Justice Department and the Fed, CBS reported. Bloomberg reported that Federal Housing Finance Agency Director Bill Pulte was a key instigator of the subpoenas, and CBS said Pulte told it that the matter was “out of my purview” and that he knew nothing about it.

The strongest early pushback came from within Trump’s own party. Sen. Thom Tillis, a North Carolina Republican on the Banking Committee, said the investigation raises questions about the Justice Department’s independence and that he would oppose Trump’s nominees to the Fed, including for chair, until the matter is resolved. He wrote that “it is now the independence and credibility of the Department of Justice that are in question,” The American Conservative reported. Because the committee has 13 Republicans and 11 Democrats, CBS noted, Tillis’s opposition could stop a nomination from advancing.

Democrats also objected. Senate Minority Leader Chuck Schumer called the probe an assault on the Fed’s independence, and Sen. Elizabeth Warren urged the committee not to advance any Fed nominee, including the next chair, CBS reported. Sen. Mark Warner warned that uncertainty could affect borrowing costs.

Powell’s term as chair ends in May. The Senate confirmed him 84-13 when Trump first nominated him, and President Joe Biden later renominated him, CBS noted.