Powell says Federal Reserve hit with DOJ subpoenas, indictment threat

Federal Reserve Chair Jerome Powell said on Jan. 11 that the Department of Justice served the central bank with subpoenas and threatened it with a criminal indictment over congressional testimony he provided last summer about a Fed building renovation project.

In a video statement, Powell called the threat of criminal charges a "pretext" aimed at putting pressure on the Fed to lower interest rates. The move marks a significant escalation in President Donald Trump's fight with the independent central bank and Powell, in which the president has repeatedly attacked over his leadership.

"I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law," Powell said in a written statement released by the Fed. "But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure."

Since returning to the White House in early 2025, Trump has demanded that the Fed slash interest rates and has blamed its policy for holding back the economy. Trump has also expressed eagerness to fire Powell, whose term as chair expires in May.

Powell has previously ignored Trump's criticisms and actions, but his comments on Jan. 11 marked a turning point as he directly accused the Trump administration of using the legal system to try to influence Fed policy.

"This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role ... Those are pretexts," Powell said. "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."

Republican Sen. Thom Tillis, a member of the Senate Banking Committee that vets Presidential nominees for the Fed, said the threat of criminal charges puts the Department of Justice's "independence and credibility" in question.

"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," Tillis said in a statement. "I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved."

In an interview with NBC News on Jan. 11, Trump said he had no knowledge of the Justice Department's actions.

"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.

Contributing: Zac Anderson, USA TODAY; Reuters