Federal Reserve Chair Jerome Powell responded Sunday to a criminal investigation launched by the Trump administration, which alleges that Powell lied during congressional testimony about the scope and cost of renovations at the Federal Reserve’s headquarters.
Powell accused the president of launching the investigation out of frustration with the Fed’s pace on interest rate cuts. President Trump has spent the past year publicly pushing for lower rates to boost the U.S. economy, while the Fed remained cautious, warning that premature cuts could reignite inflation. The standoff ultimately earned Powell the nickname “Too Late Powell.”
"This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings," Powell said in his video statement. "It is not about Congress's oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts. 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."
"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation," Powell added.
I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
This is not the first time Powell has faced scrutiny over the Federal Reserve’s renovation project. In the summer of 2025, President Trump toured the site with Powell and confronted him over what he said were $3.1 billion in renovation costs, pulling out a folded sheet of paper listing the estimates. Powell pushed back after examining the document, telling the president that the figure included a third building whose renovations had already been completed.
yikes -- Powell shakes his head as Trump rips into him for the cost of Fed building renovations. Powell denies some of the claims Trump is making. pic.twitter.com/Ok2aoE0JFx
— Aaron Rupar (@atrupar) July 24, 2025
Others have also questioned what Powell would stand to gain from overpaying for renovations, particularly with his term set to end in May of this year.
The renovations are set to cost $2.5 billion and are fully paid for by the Federal Reserve itself, not taxpayers. The central bank funds its renovations through its own revenue, which is earned from interest on government securities and fees charged to financial institutions.