Justice Department Launches Criminal Investigation Against Federal Reserve Chair Jerome Powell, Says
In an extraordinary escalation of a months-long attack on the Federal Reserve’s independence, federal prosecutors have launched a criminal investigation against Federal Reserve Chairman Jerome Powell, he confirmed in a statement Sunday night.
The investigation is related to Powell’s testimony earlier this year about the multi-year renovation of Federal Reserve buildings, Powell said in a video message published by the Federal Reserve.
But Powell says it’s clear the investigation is ultimately part of the increasingly hostile push by President Donald Trump’s administration to pressure the Federal Reserve to lower interest rates.
Federal Reserve Chairman Jerome Powell speaks during a news conference following a two-day meeting of the Federal Open Market Committee at the U.S. Federal Reserve in Washington, Dec. 10, 2025.
Kevin Lamarque/Reuters
“It’s about whether the Federal Reserve will be able to continue setting interest rates based on evidence and economic conditions, or whether monetary policy will instead be driven by political pressure or intimidation,” Powell said.
In a statement to ABC News, a spokesperson for Attorney General Pam Bondi said, “The Attorney General has directed her U.S. attorneys to prioritize investigating any abuse of taxpayer dollars.”
This is a developing story. Please check back for updates.
