Federal Reserve Chair Jerome Powell said Sunday the Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his testimony about the Fed's building renovations.
"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 told reporters in the Sunday night Air Force One press gaggle on his return to Washington, D.C.
Powell issued a statement Sunday night, respecting the investigation but vowing to "stand firm in the face of threats."
In a video statement, Powell said the threat of criminal charges are "pretexts" to undermine the Fed's independence when it comes to setting interest rates.
"I have deep respect for the rule of law and for accountability in our democracy," Powell said. "No one — certainly not the chair of the Federal Reserve — is above the law.
"But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure.
"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; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts.
"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.
"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."
A spokesperson for U.S. Attorney Jeanine Pirro's office did not immediately respond Sunday to The Associated Press' requests for comment.
The inquiry, approved in November by Pirro, is examining Powell's public testimony and Federal Reserve spending records related to the renovation, which is now estimated to be $700 million over budget, with total costs nearing $2.5 billion, The New York Times reported Sunday night.
The investigation marks a significant escalation in President Donald Trump's long-running clash with Powell, whom the president has repeatedly criticized for resisting calls to sharply cut interest rates.
Trump has threatened to fire Powell and said he has already chosen a replacement, with Kevin Hassett, his top economic adviser, seen as a leading contender. Powell's term as chair ends in May, though his term as a Fed governor runs through January 2028.
Prosecutors have requested documents from Powell's staff but have not publicly confirmed whether a grand jury has been convened or whether subpoenas have been issued. The Justice Department and the Federal Reserve declined to comment to the Times.
At issue are renovations that began in 2022 on the Fed's historic Washington buildings, including asbestos removal, accessibility upgrades, and modernization.
Powell has denied allegations that the project includes luxury features such as private dining rooms, special elevators, or new marble, saying earlier plans were revised and scaled back.
The Fed has attributed cost overruns to higher labor and material costs and unforeseen contamination.
Eric Mack ✉
Eric Mack has been a writer and editor at Newsmax since 2016. He is a 1998 Syracuse University journalism graduate and a New York Press Association award-winning writer.
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