Federal Reserve Chair Jerome Powell announced that he is under federal investigation, releasing a video statement from his official government account in which he claimed that subpoenas and the threat of criminal charges are being used as retaliation for refusing to adjust interest rates to align with the president’s wishes.

Powell stated that the investigation centers on his June 2025 testimony before the U.S. Senate regarding the scope and cost of renovations to the Federal Reserve’s Washington, D.C. headquarters. According to reporting, investigators are examining whether Powell misled lawmakers about the extent and expense of the project. Powell, however, rejected that premise outright, describing the probe as a pretext designed to punish him for maintaining the Federal Reserve’s independence.

In his remarks, Powell emphasized that he has served under four presidential administrations and has consistently resisted political pressure when setting monetary policy. He argued that interest rate decisions must be guided by economic data, inflation metrics, and labor market conditions—not by partisan demands or political timelines.

The announcement immediately sparked debate over the boundaries between executive oversight and central bank independence. Powell warned that using subpoenas or criminal investigations to influence monetary policy decisions risks undermining confidence in the Federal Reserve and could distort economic decision-making across markets.

From the administration’s perspective, officials have not accepted Powell’s characterization of the investigation, noting that congressional testimony must be accurate regardless of position or office. The focus, they argue, is accountability—particularly when taxpayer-adjacent resources and major federal construction projects are involved.

The dispute places the Federal Reserve at the center of a broader confrontation over transparency, authority, and economic governance. As the investigation proceeds, the stakes extend beyond Powell personally, touching on how independent institutions interact with elected leadership during periods of economic pressure and political scrutiny.