WASHINGTON, Jan. 11 (Xinhua) -- Federal Reserve Chairman Jerome Powell confirmed in a statement on Tuesday evening that the U.S. Department of Justice issued a grand jury subpoena on January 9 to launch a criminal investigation into him regarding the renovation of the Federal Reserve headquarters building.
In his statement, Powell said the real reason for the criminal charges was that "the Federal Reserve did not cater to the president's preferences, but set interest rates based on the best judgment of the public interest."
Since the start of his second term, US President Trump has consistently urged the Federal Reserve to cut interest rates and publicly criticized Powell as "Mr. Too Late." In July 2025, White House and Trump administration officials began pressuring Powell to resign, citing significant budget overruns in the Federal Reserve headquarters renovation project. That same month, Trump inspected the construction site and claimed the renovation project would cost $3.1 billion. Powell denied this.
The photo shows the Federal Reserve headquarters building under construction on December 31, 2025. (Photo by Chen Mengtong, China News Service)"This unprecedented move should be viewed within the larger context of the threats and continued pressure from this administration," Powell said in a statement on the 11th. "The core question is: Can the Federal Reserve continue to base its monetary policy on evidence and economic conditions, or will it be swayed by political pressure or intimidation?"
According to The Washington Post, a spokesperson for the U.S. Department of Justice declined to confirm the existence of the investigation, but said Attorney General Bundy "has instructed his federal prosecutors to prioritize any misuse of taxpayer funds."
In an interview with NBC on the 11th, Trump said he knew "nothing" about Powell's investigation and that Powell "certainly didn't do a good enough job" at the Federal Reserve.
The photo shows Federal Reserve Chairman Jerome Powell attending a press conference on June 18, 2025. (Photo by Chen Mengtong, China News Service)Jerome Powell was nominated by Donald Trump to serve as Chairman of the Federal Reserve during Trump's first term. He succeeded Janet Yellen as Chairman of the Fed in February 2018. In 2021, Powell was nominated by then-President Joe Biden to serve a second term as Chairman of the Federal Reserve. His term will end in May 2026.
In his statement, Powell concluded, "I have served the Federal Reserve in four administrations, both Republican and Democratic. Throughout each term, I have remained unaffected by political fears or biases, consistently focused on the Fed's statutory mandate—to maintain price stability and achieve full employment." (End)
