Federal prosecutors have opened a criminal investigation into Federal Reserve chair Jerome Powell, according to a statement released on Sunday.
Powell said the US justice department issued subpoenas related to testimony he gave to a Senate committee about renovations to Federal Reserve buildings.
He described the investigation as unprecedented and suggested it followed repeated clashes with President Donald Trump over interest rate policy.
This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation.
Jerome Powell said.
Powell said he respects the rule of law but warned the probe should be viewed in the context of sustained pressure from the administration.
President Trump has repeatedly criticised Powell for not cutting rates faster, despite the Fed reducing rates three times in late 2025.
Republican Senator Thom Tillis said he would oppose any future Federal Reserve nominations until the legal matter is resolved.
If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none.
Thom Tillis said.
The investigation is being overseen by the US Attorney’s Office for the District of Columbia, according to reports.