The U.S. Department of Justice has served the Federal Reserve with grand jury subpoenas related to Jerome Powell’s congressional testimony about the central bank’s $2.5 billion headquarters renovation, according to Powell’s own public statement released Sunday evening.
The subpoenas stem from Powell’s June 2025 appearance before the Senate Banking Committee, where he testified about the scope, features, and cost of a multi-year renovation of the Federal Reserve’s historic office buildings in Washington, D.C.
Powell said the subpoenas could threaten a criminal indictment, a characterization the Justice Department has not publicly addressed.
Powell Confirms Subpoenas, Denies Wrongdoing
In a written statement dated January 11, Powell confirmed that the Department of Justice served the Federal Reserve on Friday.
“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June,” Powell said.
Powell acknowledged the seriousness of the matter and emphasized accountability under the law.
“No one—certainly not the chair of the Federal Reserve—is above the law,” he said.
At the same time, Powell denied that the subpoenas are tied to inaccurate testimony or misrepresentations about the renovation project. He said the Federal Reserve made efforts through testimony and public disclosures to keep Congress informed about the project.
Renovation Costs and Congressional Scrutiny
The renovation involves the Federal Reserve’s two primary office buildings in Washington’s Foggy Bottom neighborhood, including the Marriner S. Eccles Federal Reserve Building, and is estimated to cost approximately $2.5 billion.
During his June testimony, Powell sought to counter reports that the renovation included luxury upgrades, telling lawmakers that the project did not involve new marble, special elevators, water features, rooftop gardens, or similar enhancements. He said the work was necessary due to serious infrastructure and safety issues, including water intrusion and aging systems, and that inflation and construction challenges contributed to cost overruns.
Federal prosecutors are now examining whether Powell’s testimony accurately characterized the scope and cost of the project. No charges have been filed.
Trump–Powell Tensions Provide Political Backdrop
The investigation unfolds amid long-running tensions between Powell and Donald Trump, who has repeatedly criticized both the renovation and the Federal Reserve’s monetary policy.
Trump has publicly mocked the renovation’s cost and design and has threatened legal action over the project. He has also sharply criticized Powell for resisting pressure to cut interest rates, arguing that lower rates would save the federal government hundreds of billions of dollars.
Powell, who was appointed Fed chair by Trump in 2017, has defended the central bank’s independence and said interest-rate decisions should be driven by economic conditions rather than political demands.
Fed Emphasizes Independence and Self-Financing
The Federal Reserve has stressed that it is self-financing and does not rely on congressional appropriations for its operating expenses, including building maintenance and renovations. Its income primarily comes from interest on government securities and fees charged to financial institutions.
The renovation project is scheduled for completion in the fall of 2027, with Washington-based employees expected to begin occupying the building in March 2028.
Powell said he intends to continue serving as chair.
“I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people,” he said.
The Department of Justice and the White House have not publicly commented on the subpoenas.
