Departamento of Justiça of Estados Unidos opened a criminal investigation against the president of Federal Reserve, Jerome Powell. The investigation focuses on the statement he gave to Senado in June 2025 about the renovation project for the central bank headquarters in Washington. Federal Reserve confirmed receipt of federal subpoenas to provide documents related to the case.
Powell released a video on Sunday stating that the action represents an attempt at political pressure. Ele linked the investigation to Fed’s refusal to adopt interest rate cuts in accordance with President Donald Trump’s preferences. Powell reinforced that the central bank makes decisions based on economic assessment in the public interest.
Details of the investigation into the reform
The investigation examines whether Powell provided false information to Congresso regarding the costs, scope and changes to the renovation project for two historic buildings near National Mall. The estimated cost of the work reaches US$2.5 billion, a value that increased in relation to initial projections due to adjustments in planning and unexpected increases.
Federal Reserve argues that the reform aims to improve the safety and operational efficiency of buildings built in the 1930s. The work includes consolidating operations to reduce future expenses, as disclosed in official central bank materials.
Jerome Powell’s reaction to the investigation
Powell stated in a recorded message that he respects Estado of Direito and congressional oversight. Ele emphasized that no one is above the law, but classified the threat of accusations as unprecedented and motivated by factors outside the reform itself.
The chair of Fed stated that he will continue in his position and that the investigation will not interfere with his duties. Seu term as president ends in May 2026, while the period as a board member extends until 2028.
President’s position
In an interview with NBC News, Donald Trump stated that he was unaware of the details of the investigation. Ele criticized Powell’s performance in Federal Reserve and in construction management, but denied any relationship between the investigation and demands for a reduction in interest rates.
Trump highlighted that the pressure on Powell comes exclusively from high interest rate levels. Ele argued that the public has a natural influence on monetary policy due to economic effects.
Conducting the investigation by Departamento of Justiça
The case is led by the federal prosecutor’s office of Washington, Jeanine Pirro. The investigation began in November 2025 and covers both Powell’s testimony and the renovation project’s expense records.
Departamento of Justiça prioritizes cases of possible abuse of public resources, as directed by Attorney General Pam Bondi. Federal Reserve operates with its own revenues, arising from financial services and income from assets, without depending on taxes.
Repercussions in the American Congresso
Republican Senator Ele is part of Comitê Bancário of Senado and considered the action as clear evidence of attempted interference in the institution’s independence.
Democratic Senator Elizabeth Warren criticized the use of Departamento of Justiça to align Fed with the government’s political interests. Ela pointed out the risk of compromising the central bank’s autonomy in monetary decisions.
Historical context of tensions between Trump and Fed
This investigation does not represent an isolated case of legal action against figures criticized by the president. Departamento of Justiça conducted similar investigations in other contexts involving political opponents, some of which were annulled in court due to procedural irregularities.
The government is also seeking to remove the governor of Fed Lisa Cook, the target of an investigation into alleged irregularities in real estate financing. Her case is being processed in Supremo Tribunal of Estados Unidos.
Immediate impact on financial markets
The release of Powell’s video generated negative reactions in the markets. Contratos S&P 500 index futures fell about 0.5% shortly after the news, as investors flocked to safe-haven assets.
The price of gold rose approximately 2% and reached a new record of US$4,589 per troy ounce. The dollar depreciated against the euro and the Swiss franc amid the uncertainties.
The situation reinforces debates about the autonomy of the Federal Reserve amid external pressure. The central bank maintains its independent financing structure and continues to prioritize decisions based on economic data.
