Jerome Powell Targeted in Federal Criminal Investigation Linked to Fed Building Renovation Testimony, Trump Denies Role

06:22 AM EST, 01/12/2026 (MT Newswires) -- Federal Reserve Chair Jerome Powell said Sunday that federal prosecutors have initiated a criminal investigation against him.

The probe is linked to Powell's earlier testimony regarding the multi-year renovation of Federal Reserve buildings, which he, in a video statement, said is part of President Donald Trump's pressure campaign to influence interest rates.

"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.

Trump's administration has been vocal about its dissatisfaction with current interest rates,

Meanwhile, Trump denied any involvement in the investigation during a Sunday night interview with NBC News. "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," he said.

In July, Trump and Powell toured the Federal Reserve's $2.5 billion renovation project. Trump criticized the cost overruns, while the Fed attributed it to unforeseen expenses, asserting that the renovation would "reduce costs over time by allowing the Board to consolidate most of its operations."

Powell's term as Fed Chair ends in May, but he will remain on the Board of Governors until 2028.

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