Fed Chair Powell Remains Silent on Justice Department’s Criminal Investigation

A Justice Department criminal investigation, criticism from senior Trump administration officials, and a looming successor announcement set the stage for a politically charged exchange that Federal Reserve Chairman Jerome Powell largely avoided on Wednesday.

Powell spoke following the Fed’s decision to keep interest rates unchanged, marking his first public appearance since the Justice Department opened a criminal investigation into his congressional testimony regarding the Fed’s headquarters renovation.

Jerome Powell, chairman of the U.S. Federal Reserve, during a news conference following a Federal Open Market Committee meeting in Washington, D.C., on Wednesday, May 7, 2025. (Tierney L. Cross/Bloomberg/Getty Images / Getty Images)

Reporter: “Can you say whether the Fed has responded to the subpoenas?”
Powell: “I have nothing for you on that today.”

FEDERAL RESERVE CHAIR POWELL UNDER CRIMINAL INVESTIGATION OVER HQ RENOVATION

In a separate line of questioning, Powell was asked about his future at the Federal Reserve following his term as chair, which ends in May.

Reporter: “Have you made a decision on whether you would remain as a governor of the Federal Reserve?”
Powell: “No, and once again, I have nothing for you on that today.”

Reporter: “Why would you want to leave at all under the circumstances?”
Powell: “Again, I don’t want to get into this. There’s a time and place for these questions, and it’s not something I’m going to get into today.”

TRUMP VS THE FEDERAL RESERVE: HOW THE CLASH REACHED UNCHARTED TERRITORY

When asked about conversations with lawmakers, Powell also declined to discuss them.

Reporter: “Republican Sen. Thom Tillis, who sits on the Senate Banking Committee, said he will block any Fed nominee, including the chair, until this investigation into you is resolved. Do you support this move by the senator? And what conversations have you had with the senator?

Powell: “I’ve got nothing for you on that.”

Powell referred questions related to the probe to his rare Jan. 11 video statement, a sharp break with his typically measured approach. He confirmed the investigation and expressed respect for the rule of law and congressional oversight, but described the action as “unprecedented” and driven by political pressure.

“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” Powell stated in his video statement on January 11.

“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,” he added.

POWELL REVEALS WHAT IT WOULD TAKE TO STEP DOWN FROM THE FED AS PRESSURE MOUNTS

Construction on the Marriner S. Eccles Federal Reserve building in Washington, D.C., on July 14, 2025.  (Al Drago/Bloomberg via Getty Images)

The project to update the Federal Reserve’s two main Washington, D.C., office buildings in the Foggy Bottom neighborhood is expected to cost $2.5 billion and is being funded entirely by the central bank, not taxpayers. The Fed finances its operations without congressional appropriations, primarily drawing revenue from interest on government securities and fees charged to financial institutions.

In June 2025, Powell informed members of the Senate Banking Committee that “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.”

Powell also emphasized that no one “wants to do a major renovation of a historic building during their term in office.” He explained, “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,” adding that the building is “not really safe” and not waterproof.

A Justice Department criminal investigation, criticism from senior Trump administration officials, and a looming successor announcement set the stage for a politically charged exchange that Federal Reserve Chairman Jerome Powell largely avoided on Wednesday.

Powell spoke following the Fed’s decision to keep interest rates unchanged, marking his first public appearance since the Justice Department opened a criminal investigation into his congressional testimony regarding the Fed’s headquarters renovation.

Jerome Powell, chairman of the U.S. Federal Reserve, during a news conference following a Federal Open Market Committee meeting in Washington, D.C., on Wednesday, May 7, 2025. (Tierney L. Cross/Bloomberg/Getty Images / Getty Images)

Reporter: “Can you say whether the Fed has responded to the subpoenas?”
Powell: “I have nothing for you on that today.”

FEDERAL RESERVE CHAIR POWELL UNDER CRIMINAL INVESTIGATION OVER HQ RENOVATION

In a separate line of questioning, Powell was asked about his future at the Federal Reserve following his term as chair, which ends in May.

Reporter: “Have you made a decision on whether you would remain as a governor of the Federal Reserve?”
Powell: “No, and once again, I have nothing for you on that today.”

Reporter: “Why would you want to leave at all under the circumstances?”
Powell: “Again, I don’t want to get into this. There’s a time and place for these questions, and it’s not something I’m going to get into today.”

TRUMP VS THE FEDERAL RESERVE: HOW THE CLASH REACHED UNCHARTED TERRITORY

When asked about conversations with lawmakers, Powell also declined to discuss them.

Reporter: “Republican Sen. Thom Tillis, who sits on the Senate Banking Committee, said he will block any Fed nominee, including the chair, until this investigation into you is resolved. Do you support this move by the senator? And what conversations have you had with the senator?

Powell: “I’ve got nothing for you on that.”

Powell referred questions related to the probe to his rare Jan. 11 video statement, a sharp break with his typically measured approach. He confirmed the investigation and expressed respect for the rule of law and congressional oversight, but described the action as “unprecedented” and driven by political pressure.

“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” Powell stated in his video statement on January 11.

“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,” he added.

POWELL REVEALS WHAT IT WOULD TAKE TO STEP DOWN FROM THE FED AS PRESSURE MOUNTS

Construction on the Marriner S. Eccles Federal Reserve building in Washington, D.C., on July 14, 2025.  (Al Drago/Bloomberg via Getty Images)

The project to update the Federal Reserve’s two main Washington, D.C., office buildings in the Foggy Bottom neighborhood is expected to cost $2.5 billion and is being funded entirely by the central bank, not taxpayers. The Fed finances its operations without congressional appropriations, primarily drawing revenue from interest on government securities and fees charged to financial institutions.

In June 2025, Powell informed members of the Senate Banking Committee that “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.”

Powell also emphasized that no one “wants to do a major renovation of a historic building during their term in office.” He explained, “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,” adding that the building is “not really safe” and not waterproof.