Archive · 13 Jan 2026
Powell Faces DOJ Probe Amid Trump Pressure
Jerome Powell, the head of the Federal Reserve, is being investigated by the US government.
They are looking into whether he lied to Congress about the cost and size of a big renovation project for the Fed's headquarters.
The project has cost much more than planned.
President Trump has been criticizing Powell for not lowering interest rates and has suggested replacing him.
Powell says the investigation is really about keeping the Fed independent from political pressure.
He denies any wrongdoing and says the renovation plans have changed over time.
The investigation does not mean Powell will definitely be charged with a crime.
Federal prosecutors are investigating Jerome Powell over the Fed's headquarters renovation and his statements to Congress.
The inquiry was authorized in November 2025 by Jeanine Pirro, a Trump ally.
The renovation project, starting in 2022 and ending in 2027, has exceeded its initial cost by $700 million.
President Trump has criticized Powell and suggested he might replace him before Powell's term ends in May 2026.
Powell has denied claims about luxurious features in the renovation and stated that the plans have evolved.
- Who
- Jerome Powell, Federal Reserve Chair
- What
- Criminal investigation into potential misleading statements about Fed headquarters renovation and interest rate decisions
- When
- Inquiry authorized in November 2025
- Where
- Washington DC
- Why
- To examine potential misconduct in the Fed's renovation project and Powell's statements to Congress, as well as the broader conflict over interest rate policies
Trump Administration
Jerome Powell
Interest Rates
Trump Administration
Trump criticizes Powell for not lowering interest rates more aggressively, calling him a 'numbskull' and 'moron'.
Jerome Powell
Powell defends his rate decisions, citing the need to control inflation and respond to economic conditions.
Fed Independence
Trump Administration
Trump suggests Powell could be dismissed for 'fraud' over the Fed's renovation project, implying political pressure.
Jerome Powell
Powell accuses the Trump administration of threatening prosecution to influence Fed policies, defending the central bank's independence.
- Subject of Investigation
- Jerome Powell, Federal Reserve Chair
- Focus of Inquiry
- Federal Reserve headquarters renovation and potential misleading statements to Congress
- Initiated By
- US Attorney’s Office for the District of Columbia
- Authorized By
- Jeanine Pirro, US Attorney for DC
- Renovation Project Cost
- $700 million over initial projections
- Renovation Project Timeline
- Began in 2022, scheduled for completion in 2027
- Powell's Term as Fed Chair
- Expires in May 2026
- Trump's Stance
- Criticized Powell for not lowering interest rates, suggested legal action over renovation
- Potential Successors
- Kevin Hassett, Kevin Warsh, Christopher Waller
Sources
US attorney's office opens criminal investigation into Fed chair Powell: Report
US stock futures fall after Jerome Powell says he's under 'criminal investigation'
Powell says DoJ probe is consequence for keeping Fed rates independent of Trump's preferences
US opens criminal probe into Fed Chair Jerome Powell over $2.5bn HQ renovation: Report
Powell says Trump administration threatened criminal indictment
Federal Reserve received Justice Department subpoena threatening criminal indictment
Federal Reserve Chair Jerome Powell Says Donald Trump Team Has Threatened Him With Criminal Indictment
US Fed Chair Jerome Powell says he is under criminal investigation by DoJ amid Trump's pressure
Fed served with DOJ subpoenas, Powell vows to stand firm
What are the charges against Fed Chair Jerome Powell? 10 key points to know
US futures slip while Asian shares gain as Fed chair Powell faces legal threat
Trump’s investigation of Powell is also a warning to the next Fed chair
U.S. Fed chair Powell under investigation
Why the criminal investigation into Fed Chair Jerome Powell sends a chilling message
U.S. Futures fall, safe-havens surge as Fed Chair Powell under investigation
Trump’s investigation of Powell is also a warning to the next Fed Chair
Donald Trump takes on the Fed: Why Jerome Powell is now facing a criminal threat – Firstpost
For years, Powell avoided fighting Trump. That’s over.
5 things to know about Fed’s building renovations at the center of Trump’s fight with Powell
Trump DOJ targets Fed’s Powell, drawing pushback
Dow falls over 400 points after criminal investigation into Fed Chair Powell
Who is Kevin Hassett? Donald Trump likely to pick Fed chair Jerome Powell's successor soon
What is ‘Sell America’ trade? Powell probe sparks investor fears over Fed Reserve independence
The Fed-Trump feud: What you need to know
