Trump and Powell have had a not-so-secret feud over the past year. But it looks like this is checkmate.
Because a massive investigation into Fed Chair Jerome Powell is raising eyebrows.
Federal Reserve Chair Jerome Powell disclosed Sunday that the Department of Justice has served grand jury subpoenas on the central bank, threatening criminal charges tied to his congressional testimony about the ongoing renovation of the Fed’s headquarters in Washington, D.C.
The Investigation and Powell’s Testimony
The probe, handled by the U.S. Attorney’s Office for the District of Columbia, centers on whether Powell accurately described the scope and features of the $2.5 billion project during a June 2025 appearance before the Senate Banking Committee.
In that testimony, Powell pushed back against claims of extravagant additions, stating, “There’s no new marble. There are no special elevators. They’re old elevators that have been there. There are no new water features. There are no beehives, and there’s no roof garden terraces.”
He emphasized that early draft plans included some of those elements but were dropped from the final version. Republicans, including figures aligned with President Trump, have accused him of misleading lawmakers about luxury perks like private VIP dining rooms and an outdoor terrace.
Powell framed the subpoenas as politically motivated, saying in a video statement, “This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts.”
He added, “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”
The Renovation Project and Rising Costs
The multiyear effort, which began in 2022, targets the Eccles Building and another Fed office in Foggy Bottom, addressing long-standing safety issues—Powell noted the structure “is not really safe” and not waterproof—and aiming for completion in fall 2027.
The Fed funds it entirely through its own revenue from interest on securities and fees to banks, meaning no direct taxpayer dollars are involved.
Powell explained the necessity, recalling his time as administrative governor: “We decided to take it on because, honestly, when I was the administrative governor, before I became chair, I came to understand how badly the Eccles Building really needed a serious renovation.” Critics, however, point to ballooning costs—some estimates put them closer to $3.1 billion—and comparisons to lavish historical projects.
President Trump, who toured the site with Powell in July 2025 and has long criticized the spending, previously threatened legal action and highlighted potential overruns. The scrutiny aligns with broader frustrations over Fed policies, including demands for quicker rate cuts as inflation has cooled.
Broader Context and Powell’s Stance
Powell, originally nominated by Trump in 2017 and reconfirmed, vowed to stay focused amid the pressure.
“I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people,” he said, while acknowledging, “No one—certainly not the chair of the Federal Reserve—is above the law.”
He described the probe as “unprecedented” and part of ongoing efforts to influence monetary decisions. With his term as chair expiring in May 2026, Trump has indicated a replacement is ready.
