U.S. Federal Reserve Chair Jerome Powell said on Sunday that the Trump administration had threatened him with a criminal indictment and served the central bank with grand jury subpoenas linked to his congressional testimony, in what he described as an attempt to pressure the Fed into lowering interest rates.
Reuters reported on Monday that Powell said the action stemmed from testimony he gave before the Senate Banking Committee last June concerning a renovation project at a Federal Reserve building.
He characterised the legal moves as a “pretext” designed to intensify political pressure on the central bank, marking a sharp escalation in a long-running conflict between himself and former president Donald Trump that dates back to Powell’s early years as Fed chair in 2018.
“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June,” Powell said in a statement released late on Sunday.
He stressed that he respected legal accountability while firmly rejecting any suggestion of wrongdoing. “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,” he said.
The dispute comes against the backdrop of repeated criticism from the White House over the Fed’s policy stance and its handling of a US$2.5 billion building renovation, which administration officials have described as excessive.
Powell has maintained that the project was mischaracterised and has no bearing on monetary policy decisions.
The White House did not immediately respond to requests for comment on Powell’s statement.
The Federal Reserve has long defended its independence from political interference, arguing that such autonomy is essential to maintaining price stability and financial credibility.
Powell’s remarks underscore growing concerns that legal mechanisms are being used as leverage in a broader struggle over interest rate policy. - January 12, 2026
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