Powell revealed in a video posted on the Fed's X account that on Friday, the Department of Justice issued a grand jury subpoena to the Fed. This subpoena threatens criminal prosecution related to his testimony before the Senate Banking Committee last June. His testimony, he noted, partially concerned a multi-year renovation project for the Fed's office buildings.

Powell suggested that the prosecutors' investigation stems from the Fed's practice of setting interest rates "based on the best assessment of what is good for the public," rather than acceding to the demands of US President Donald Trump. He emphasized that "no one, and certainly not the Fed chair, is above the law." However, he added, "this unprecedented action must be viewed in a broader context, with continuous threats and pressure from the administration."

Jerome Powell, chair of the US Federal Reserve (Fed), at a press conference on 17/9/2025. *Photo: Reuters*

Last year, President Trump repeatedly criticized the Fed and Powell for not cutting interest rates as quickly and aggressively as he demanded. He even threatened to sue and fire the Fed chair, and announced the dismissal of Fed Board of Governors member Lisa Cook. A federal appeals court in Washington, however, blocked this decision.

In 7/2025, the US President also visited the Fed's headquarters renovation project in Washington. He argued with Chair Powell on camera about the agency's infrastructure renovation costs. In a Truth Social post, Trump criticized Powell's "terrible" management, claiming USD 3 billion was spent on a job that should have cost only USD 50 million. The White House had stated it was investigating the matter at the time.

"The issue here is whether the Fed can continue to set interest rates based on economic conditions, or whether political pressure or intimidation will dictate monetary policy," Powell stated in the video on 11/1. The New York Times previously cited close sources reporting on the investigation into Powell, noting that the US Attorney's Office for the District of Columbia is handling the inquiry.

Senator Thom Tillis, a member of the US Senate Banking Committee, criticized the investigation into Powell. He announced his opposition to the confirmation of any Trump-nominated successor to Powell, as well as any other nominee to the Fed Board of Governors, "until this legal matter is fully resolved."

Powell's term as Fed chair concludes in 5/2026, though his term on the Fed Board of Governors extends until 2028. Tillis concluded, "There is no doubt. Advisors in the Trump administration are actively pushing to end the Fed's independence. Now, the independence and integrity of the Department of Justice are also being questioned."

Ha Thu (according to CNBC, Reuters)