US opens criminal investigation against Powell in Trump’s judicial offensive

United States federal prosecutors have opened a criminal investigation against the president of the Federal Reserve (Fed), Jerome Powell, in a new episode of legal actions that have targeted authorities and critics in conflict with the Donald Trump administration.

The opening of the investigation was revealed this Sunday (12) by the New York Times and confirmed by Powell in an official statement from the Fed.

In an official statement, Powell stated that the measure represents an “unprecedented” action and must be understood in the context of recurring pressure and threats from the Trump administration.

“No one — certainly not even the chairman of the Federal Reserve — is above the law. But this unprecedented action must be seen in the broader context of threats and continued pressure from the government,” he said.

Until the subpoenas were released, Powell had been avoiding direct confrontations and maintaining public silence in the face of attacks from the White House.

Over the past 12 months, Trump has intensified public criticism of the Federal Reserve and Jerome Powell, combining verbal attacks, threats of legal liability and questions about the central bank’s conduct of monetary policy and internal management.

The investigation is investigating whether Powell lied to Congress when he testified in June about the scope and costs of renovating the Federal Reserve headquarters in Washington. The inquiry analyzes public statements by the president of the North American central bank and spending records for the project, which began in 2022.

The case is handled by the United States Attorney’s office for the District of Columbia and was approved in November by Jeanine Pirro. Pirro was appointed to the position last year by President Donald Trump.

Prosecutors from the new prosecutor’s office contacted Powell’s team to request documents related to the reform.

The investigation involves the renovation of two historic Federal Reserve buildings in Washington — including the Marriner S. Eccles Building —, scheduled for completion in 2027. The reports indicate that the estimated cost of the project would have risen to around US$2.5 billion, around US$700 million above initial forecasts.

In the statement, Powell openly questioned the motivation of the investigation and stated that the initiative was not related to either the content of his testimony to Congress or the project to renovate the central bank’s headquarters.

“This new threat has nothing to do with my testimony last June or the renovation of the Federal Reserve buildings,” he declared.

The Fed president also stated that the opening of the investigation is linked to the institution’s conduct of interest rate policy.

According to Powell, “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 president’s preferences.”

When asked about the case, Trump said he was not aware of the investigation conducted by the Department of Justice and again attacked Powell.

“I don’t know anything about it, but he’s certainly not very good at the Federal Reserve, and he’s not very good at building buildings,” the president told NBC News.

Trump also denied that the subpoenas were related to interest rate policy. “I wouldn’t even think about doing it that way. What should put pressure on him is the fact that rates are too high. That’s the only pressure he has,” he said.

The opening of the investigation provoked reactions in the United States Congress, including among parliamentarians from the Republican Party.

Senator and Trump supporter Thom Tillis, from North Carolina, member of the Senate Banking Committee, stated that the episode raises questions about the government’s actions in relation to the Justice system.

“If there was any doubt that advisors within the Trump administration are actively pushing to end the independence of the Federal Reserve, there is now none,” he said in a statement.

Tillis added that he intends to oppose the confirmation of any Trump nominee to the Federal Reserve until the investigation is complete.

Senator Elizabeth Warren, Democrat of Massachusetts, made a similar criticism. According to her, Trump seeks to remove Powell from the Fed Board to replace him with a political ally.

“He wants to expel Jerome Powell from the Fed Board for good and install yet another puppet to complete his corrupt takeover of the American central bank,” he declared.

The case involving Powell occurs in a broader context of legal initiatives that have affected other figures in conflict with the Trump administration.

In recent months, complaints against former FBI Director James Comey and New York Attorney General Letitia James were dismissed by a federal judge. An investigation against Democratic Senator Adam Schiff has not yet gathered enough evidence to be taken to a grand jury.

The Department of Justice also opened an investigation into Federal Reserve Board member Lisa Cook on charges of mortgage fraud. Cook denies the allegations, and her lawyers say she “never committed mortgage fraud.”