Federal Reserve Chair Jerome Powell blasted President Donald Trump on Sunday night in a video response to a criminal investigation.
The video is in response to the news that the Department of Justice is investigating Powell over his congressional testimony about the $2.5 billion renovation of the Fed’s headquarters in Washington.
Powell issued a two-minute video statement in which he claimed the investigation is an attempt to pressure the independent Federal Reserve over interest rate policy.
“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June. That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings,” Powell said in the statement posted to the Federal Reserve’s website and social media accounts.
Powell claimed the investigation was not actually about his testimony or the building renovation.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said. “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.”
Take a look at the explosive allegations —
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
The investigation started as a criminal referral submitted in July by Rep. Anna Paulina Luna, R-Fla., who accused Powell of perjury during his June 25 testimony before the Senate Banking Committee.
Luna alleged Powell made false statements about luxury features included in the expensive Federal Reserve renovation project and misrepresented the scope of cost overruns.
“I laid out, in detail, how Jerome Powell lied under oath to Congress and misrepresented facts in official communications to senior administration officials, including OMB Director Russell Vought,” Luna said on social media. “Unelected bureaucrats do not get a free pass. This is exactly why oversight exists, and I am thankful the @DOJ is taking this seriously. No one is above the law.”
“The discrepancies between Chairman Powell’s sworn testimony and the factual record call for a thorough and impartial review by your office. The integrity of oversight and the trust placed in public officials — particularly those responsible for monetary policy and stewardship of taxpayer resources –demand accountability at the highest levels,” Luna previously claimed.
The investigation was approved in November by Jeanine Pirro, the U.S. Attorney for the District of Columbia and a longtime Fox News star who was appointed to office last year.
A Justice Department spokesperson told multiple outlets that Attorney General Pam Bondi “has instructed her U.S. Attorneys to prioritize investigating any abuse of taxpayer dollars,” though the spokesperson declined to comment on any specific case.
Tim Lauer, a spokesman for Pirro’s office, said they do not comment on ongoing investigations.
Trump told NBC News Sunday night he was unaware of the DOJ probe.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said.
The Federal Reserve’s renovation project has seen its costs increase from an initial $1.9 billion to $2.5 billion. Trump has repeatedly criticized the project, claiming at one point it would become the “highest price of construction per square foot in the history of the world.”
Trump has spent months asking Powell to lower interest rates more aggressively. The president has previously called Powell and other Fed officials “boneheads.” Trump said in December that he was considering bringing a lawsuit against Powell for incompetence and stated, “I would love to fire him.”
Powell, who was first nominated to the Fed chair position by Trump in 2017 and later reappointed by President Joe Biden, has a term that expires in May 2026. Trump has said he has already selected Powell’s replacement, but has not publicly announced his choice.
The investigation drew criticism from the Senate. Sen. Thom Tillis, R-N.C., a member of the Senate Banking Committee, who said he would oppose any Trump nominee to replace Powell until the investigation 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. It is now the independence and credibility of the Department of Justice that are in question. I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved,” Tillis said in a statement.
Financial markets reacted negatively to the news, with S&P 500 futures falling and the dollar weakening in overnight trading. Gold prices spiked following Powell’s statement.
The Justice Department is also investigating Fed Governor Lisa Cook over mortgage fraud allegations, which Cook has repeatedly denied through her attorneys.