Federal Reserve chair Jerome Powell says the US Justice Department has opened a criminal investigation against him. He called the move rare and deeply troubling.
The case focuses on comments Powell made to a Senate committee about the renovation of Federal Reserve buildings.
Powell said federal prosecutors sent subpoenas and warned him about possible criminal charges. He believes the move is tied to pressure from President Donald Trump, who wants the Fed to cut interest rates.
Trump later said he knew nothing about the investigation. He still criticized Powell and the building project.
A Conflict That Has Grown Worse
Trump has attacked Powell for years, often blaming him for slow rate cuts. Until now, Powell stayed mostly quiet.
This time, he spoke out. He said the independence of the Federal Reserve is now under threat.
Powell warned that interest rate decisions should come from economic data, not political pressure. He said no one is above the law, including him.
Still, he said this probe fits a pattern of pressure from the White House.
What Trump Said
Trump told reporters he had no knowledge of the Justice Department case. He again attacked Powell, calling him bad at both banking and construction.
The Justice Department has not commented on the investigation.
Yellen Raises the Alarm
Former Fed chair Janet Yellen said the case is extremely troubling. She warned that financial markets should be concerned.
Yellen said she does not believe Powell would lie. She thinks the real goal is to remove him from office.
She also warned that pushing the Fed through legal threats could damage the country’s economy.
Why the Buildings Matter
The case involves the renovation of two old Fed buildings in Washington. Both were built in the 1930s and had not been updated.
The project includes safety work such as removing asbestos and lead. The Fed says the upgrades will lower costs in the long run.
Trump claims the project will cost $3.1 billion. The Fed says it will be closer to $2.5 billion.
What Happens Next
Trump first picked Powell as Fed chair in 2017. Powell’s term ends in May.
Trump is expected to name a new chair soon. The investigation has now added more pressure to that decision.
