WASHINGTON, D.C. January 13, 2026 – The U.S. Department of Justice has launched a criminal investigation into Federal Reserve Chair Jerome Powell, focusing on his congressional testimony regarding the central bank’s multibillion-dollar headquarters renovation project. The probe, which escalated with grand jury subpoenas served to the Federal Reserve last week, has drawn sharp political divisions and international concern over the independence of the U.S. central bank.
The investigation centers on potential discrepancies in Powell’s statements to Congress about the scope and costs of the Federal Reserve’s $2.5 billion renovation of its Washington headquarters. Prosecutors are examining whether Powell misled lawmakers during testimony before the Senate Banking Committee last summer, amid allegations of cost overruns and misrepresentation of the project as a necessary taxpayer-funded endeavor.
In a rare public response, Powell described the probe as “unprecedented” and suggested it may be linked to political pressure from the Trump administration to lower interest rates. He vowed to continue serving his term “without political fear or favor.”
Republican Rep. Anna Paulina Luna (R-Fla.), who formally referred Powell to the DOJ for investigation last year, defended the probe during an appearance on Newsmax. “You can’t perjure yourself to Congress,” Luna said, emphasizing that her referral was based on Powell’s own statements and predated the current administration. She rejected claims of political motivation, stating, “No one is above the law,” and noted that lying to Congress carries potential jail time for ordinary citizens.
Luna’s comments, shared widely on X (formerly Twitter), highlighted her view that Powell “knowingly misled both Congress and the American public” about the renovation, which she described as an extravagant project. The segment featured on-screen graphics of her prior statements calling for accountability.
The investigation has sparked backlash, with former Fed chairs and lawmakers condemning it as a threat to central bank independence. Globally, leaders from major central banks—including the European Central Bank, Bank of England, and others—issued a joint statement expressing “full solidarity” with Powell and underscoring the importance of preserving institutional independence.
U.S. Attorney for the District of Columbia Jeanine Pirro, a Trump appointee, has overseen the probe’s intensification. Sources indicate the inquiry began late last year following initial outreach to the Fed, which reportedly did not fully respond.
President Trump, who originally nominated Powell in 2017 but later criticized him, has publicly pushed for lower interest rates and indicated plans to replace him upon term expiration.
The case marks the first known criminal probe into a sitting Federal Reserve chair, raising questions about the intersection of monetary policy and legal accountability.
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