- Jerome Powell said the Federal Reserve was served grand jury subpoenas over Fed renovations.
- He said this was the latest move in the Trump administration’s pressure campaign over interest rates.
- The White House has repeatedly criticized the $2.5 billion Fed renovations.
Federal Reserve Chair Jerome Powell said the US central bank was served grand jury subpoenas on Friday from the Department of Justice that threatened criminal indictment.
In a statement on Sunday night, Powell said the subpoenas focused on his June testimony about renovations at historic Fed office buildings. The Fed chair said the subpoenas were the latest move in the Trump administration’s pressure campaign on the central bank to lower interest rates.
“No one — certainly not the chair of the Federal Reserve — is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
He added: “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.”
Powell also suggested that this latest threat won’t lead to his departure from his position, which President Donald Trump has repeatedly called for. Powell said he would continue to do his job.
The $2.5 billion planned headquarters renovations have become a major talking point for White House officials, who have accused Powell of overspending and breaking oversight laws.
In July, Trump said that Powell’s actions were “sort of” grounds for dismissal but later said he was “highly unlikely” to fire Powell, unless it was for “fraud.” Powell has defended the renovations.
This is a developing story. Please check back for updates.
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