Federal Prosecutors Open Criminal Investigation into Jerome H. Powell

On January 11, 2026, federal prosecutors in Washington, D.C., announced the initiation of a criminal investigation into Jerome H. Powell, the Chair of the Federal Reserve. This inquiry centers on the Federal Reserve"s recent $2.5 billion renovation of its headquarters and whether Powell provided false testimony to Congress regarding this significant project. The investigation has been approved by Jeanine Pirro, a known ally of former President Donald Trump, and represents a notable escalation in the ongoing tensions between the Trump administration and the Federal Reserve.

Key Details

The investigation into Jerome H. Powell is part of a broader conflict between President Trump and the Federal Reserve, particularly concerning monetary policy decisions. President Trump has expressed frustration with Powell"s reluctance to lower interest rates, which he believes would stimulate economic growth. In response to Powell"s actions, Trump has threatened legal action and indicated plans to announce a successor for Powell"s position as Fed Chair in the near future.

The $2.5 billion renovation of the Federal Reserve"s headquarters, which is located in Washington, D.C., has drawn scrutiny not only for its cost but also for the transparency surrounding the project. The investigation seeks to determine if Powell misled Congress during discussions about the renovation, raising questions about accountability and governance within the Federal Reserve.

Jeanine Pirro"s involvement in approving the investigation adds a layer of political intrigue, given her close ties to Trump and her previous roles in law enforcement and media. This inquiry underscores the ongoing debate about the independence of the Federal Reserve, an institution designed to operate free from political pressures, and the implications of political interference in its operations.

Background

Jerome H. Powell has served as the Chair of the Federal Reserve since February 2018, having been appointed by President Trump. His tenure has been marked by significant economic challenges, including the aftermath of the COVID-19 pandemic and fluctuating inflation rates. The Federal Reserve plays a crucial role in managing the U.S. economy, primarily through setting interest rates and regulating the money supply.

President Trump"s administration has frequently clashed with the Federal Reserve, particularly over interest rate policies. Trump has publicly criticized Powell for not being aggressive enough in cutting rates to foster economic growth, which he argues is essential for his administration"s success and for the upcoming elections.

Image for Federal prosecutors open criminal investigation into Jerome H. Powell

What"s Next

The criminal investigation into Powell could have far-reaching implications for both the Federal Reserve and the Trump administration. Should the inquiry uncover evidence of wrongdoing, it could lead to significant political fallout and potentially impact Powell"s position as Chair. Furthermore, the investigation raises critical questions about the balance of power between the executive branch and the Federal Reserve, an institution that is intended to operate independently of political influence.

As the situation develops, observers will be closely monitoring the responses from both the Federal Reserve and the Trump administration. The outcome of this investigation may also influence public perception of the Federal Reserve"s credibility and its ability to function without political interference.

For more information on related topics, see our previous reports on the investigation into Jerome H. Powell and the Federal Reserve"s operations.