Justice Department Issues Subpoenas to Federal Reserve, Powell Reveals

On Friday, the Justice Department delivered grand jury subpoenas to the Federal Reserve, based on information that Chairman Jerome Powell shared in a video statement on Sunday.

The subpoenas were linked to a potential criminal case related to Powell's appearance before the Senate Banking Committee in June 2025.

Senate Testimony and Renovation Scrutiny

Powell's Senate testimony involved discussions on a comprehensive renovation project of historic Federal Reserve buildings. The project faced criticism, particularly from Russell Vought, who headed the Office of Management and Budget during the Trump administration, for potentially illegal expenditures.

In defense of the project, Powell informed senators that accusations were exaggerated and inaccurate. He clarified there were no extravagant additions like special elevators or custom water features, only essential replacements such as substituting broken marble.

The Broader Context of Legal Threats

Powell expressed his respect for legal processes and accountability in democracy, maintaining that these actions should be viewed in a larger narrative of administrative pressure tactics.

He argued that the criminal charges appear to be linked not to the renovation or his congressional testimony but rather the Federal Reserve’s interest rate policy, which aims to serve public interest over presidential preferences.

Justice Department's Position

A Justice Department spokesperson noted Attorney General Pam Bondi's directive for U.S. Attorneys to probe any suspected misuse of public funds, without specifically mentioning cases like Powell’s.

Powell's Tenure and Presidential Expectations

Initially appointed by Donald Trump, Powell remained Federal Reserve Chair after surviving voting challenges and even President Joe Biden’s eventual confirmation, extending his term until May 2026.

Trump had openly criticized the Fed's stable interest rate policy, believing inflation levels warranted rate cuts, a change that only materialized in late 2025.

Commitment to Service

Concluding his comments, Powell emphasized his impartial service across diverse presidential administrations, reiterating his dedication to fostering price stability and employment without political pressure.