US Fed Chair Jerome Powell says he is under criminal investigation by DoJ amid Trump's pressure

Federal Prosecutors in the US Department of Justice on Sunday opened a criminal investigation into the country’s Federal Reserve Chairman Jerome Powell . Powell confirmed the probe in a video message, saying that the US Justice Department served the agency with subpoenas and threatened a criminal indictment over testimony he gave to a Senate committee about renovations to Federal Reserve buildings.

He went on to call the probe “unprecedented” and said that he initiated it because he drew the ire of US President Donald Trump. Powell has been involved in a year-long tussle with the Trump administration as he resists the government’s pressure to lower interest rates.

The Fed chair joined the long list of Trump’s political opponents who are currently facing criminal investigation by the Department of Justice. However, it is important to note that neither the DoJ nor the White House has commented on the apparent investigation as of now.

‘No one is above the law’: Powell

In the video statement, the Fed chair raised concerns about the independence of the body from political pressure. “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 said.

“I have deep respect for the rule of law and for accountability in our democracy. 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,” he furthered.

The probe, which is yet to be disclosed by the federal prosecutors, would signal a fresh escalation in Trump’s ongoing dispute with Powell, who was interestingly nominated by Trump himself to head the Federal Reserve back in 2017.

Ever since coming back to the White House, Trump has repeatedly threatened to remove Powell , whom he has criticised for not cutting interest rates as quickly as the president would have liked. However, in the second half of 2025, the Fed cut interest rates three times .

Not only this, Trump has consistently blamed his predecessor, Joe Biden, and the central bank interest rates for economic struggles in the US. Critics have raised concerns that Trump’s pressure to oust the Fed chair would affect the institution’s authority to set interest rates independently from the president.