Federal Prosecutors Open Criminal Inquiry Into Fed Chair Jerome Powell

Justice Department subpoenas central bank in probe over headquarters renovation and alleged false statements to Congress.

Federal prosecutors in Washington have opened a criminal investigation into Federal Reserve Chair Jerome H. Powell, focusing on whether he misled Congress about the cost and scope of the $2.5 billion renovation of the Federal Reserve’s Washington, D.C, headquarters, according to multiple reports citing government and legal sources. 

The inquiry was approved by the U.S. Attorney’s office for the District of Columbia and involved grand jury subpoenas served to the Federal Reserve. 

The probe centers on Powell’s June 2025 testimony before the Senate Banking Committee, during which he denied that the renovation included “special elevators,” a VIP dining room, or extravagant features, even as documents from earlier planning stages identified more ambitious design elements. Prosecutors are examining whether Powell’s statements were false or misleading under oath.

Powell acknowledged the subpoenas and the threat of a criminal indictment in a video statement, characterizing the investigation as politically motivated pressure tied to monetary policy disagreements and asserting that officials made efforts to keep Congress informed about cost increases on the project.

The Justice Department, which traditionally does not comment on ongoing investigations, has not disclosed whether charges will ultimately be filed. As of mid-January 2026, no formal indictment against Powell had been made public. 

The development has sparked bipartisan concern in Congress about the precedent of prosecuting a sitting Federal Reserve chair, with some Republican lawmakers supporting Powell and opposing potential replacements until the matter is resolved, while others emphasize the importance of accountability. 

Powell’s term as Fed chair is scheduled to end in May 2026, though he remains a governor on the Federal Reserve Board until 2028 under statute.