The U.S. Justice Department has opened a criminal investigation into Jerome Powell, Chair of the Federal Reserve, concerning cost overruns in the renovation of the Fed's headquarters. Many parties indicate this case signals strong pressure from former President Trump on the Fed.
On 12 Jan 2026 GMT+7, Jerome Powell, Chair of the U.S. Federal Reserve, revealed via video that the Justice Department has launched a criminal investigation against him after issuing a subpoena to the Fed and threatening criminal charges based on his testimony to the Senate committee regarding the Fed's building renovation project.
Powell stated that this investigation is unprecedented and believes it results from President Donald Trump's dissatisfaction after Powell refused to announce an interest rate cut, despite repeated public pressure from the U.S. leader.
The Fed Chair emphasized that the key issue is not about individuals but whether the Fed can continue to set interest rate policy based on data and economic conditions, or if it will be influenced by political pressure or intimidation. He said he respects the rule of law and democratic responsibility, with no one above the law, but this unprecedented action must be viewed in the context of ongoing pressure and threats from the administration.
However, the U.S. Justice Department and the White House have yet to issue official comments on the matter. Meanwhile, Trump told NBC News last Sunday that he was unaware of the investigation into Powell, criticizing Powell's performance at the Fed and his handling of the building construction.
Although prosecutors have not confirmed the investigation, if true, it would mark a new escalation in the conflict between Trump and Powell. Trump nominated Powell as Fed Chair in 2017 and has threatened to remove him several times, also criticizing the Fed for not cutting interest rates quickly enough.
. In the latter half of 2025, the Fed cut interest rates three times. Nevertheless, Trump continues to blame former President Joe Biden and interest rate policies for inflation and the high cost of living in the U.S.