Federal Reserve Chair Jerome Powell said Sunday that the Justice Department subpoenaed the central bank last week, threatening to indict him, he said on Sunday night.
The news is an escalation of a months-long attack on the independence of the Federal Reserve by President Donald Trump and his administration. The investigation is related to Powell’s testimony earlier this year about the multi-year renovation of the Federal Reserve buildings, Powell said in a video message.
“No one—certainly not the chair of the Federal Reserve—is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
Powell made clear the investigation is ultimately part of the Trump administration’s intense pressure campaign to push the Fed to lower interest rates.
“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,” he said.
The New York Times was the first to report of Powell being investigated.
Trump denied any involvement in a brief phone interview with NBC News on Sunday night.
“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 to NBC News reporter Garrett Haake.
“What should pressure him is the fact that rates are far too high,” Trump continued. “That’s the only pressure he’s got.
Trump has repeatedly called for Powell to be ousted from the Fed, but the 72-year-old said he will not be intimidated to quit. Powell said he would “continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”
Sen. Thom Tillis (R-N.C,) released a statement on X Sunday night, saying, “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.”
The Justice Department has also launched an investigation into Lisa Cook, a governor at the Fed, for what they call a mortgage fraud allegation. Cook has denied any wrongdoing.
