Fed Chair Powell: "Received a grand jury subpoena…a matter involving the Fed’s independence"

Jerome Powell, chair of the US Federal Reserve (Fed), said he recently received a grand jury subpoena and was notified by the Department of Justice of a potential criminal indictment.

On the 12th (local time), Powell said in a statement, “A grand jury subpoena was delivered last Friday,” adding, “The US Department of Justice informed me that it is considering criminal charges in connection with my Senate testimony in June last year.” The issue is reportedly centered on testimony related to the Fed’s Washington headquarters renovation project.

He directly linked the matter to interest-rate policy and the Fed’s independence. Powell said, “This investigation has nothing to do with my testimony or the building renovation. It is merely a pretext for the administration to pressure the Fed,” and argued that “moves to raise criminal liability are a result of the Fed having set interest rates based on judgments about the public interest, not the president’s preferences.”

He added, “At its core, this matter concerns whether the Fed can set interest rates independently, without political pressure,” underscoring concerns about the central bank’s policy independence. The Fed, meanwhile, did not comment on additional details or any legal response plan.