Fed Chairman Powell on Justice Department Investigation
Federal Reserve Chairman Jerome Powell recently acknowledged that the central bank has engaged with the Department of Justice concerning allegations related to his testimony in Congress about the renovations of the Federal Reserve’s headquarters.
As political and legal pressures mount, Powell addressed what would lead him to step down from his position. He indicated that he would only consider resigning if there was a legal breach. This commitment was highlighted in “Trillion Dollar Triage,” a book by Wall Street Journal reporter Nick Timiraos, detailing Powell’s careful public replies to President Trump’s ongoing threats regarding his removal and his more candid remarks in private.
During a 2019 House Financial Services Committee hearing, amid escalating criticism from Trump, Powell reassured lawmakers that he intended to complete his four-year term. He contemplated what would happen if he were dismissed by the president.
Timiraos noted that Powell expressed a stronger commitment in private to remain in charge of the Fed. He said, “Under no circumstances will I voluntarily leave this job until the end of my term, for any reason.” In a metaphor, he remarked that he wouldn’t “get on a lifeboat,” emphasizing his determination to stay put.
Timiraos further reported that Powell “doesn’t see any circumstances in which he would be unable to complete his term other than death.”
Amid the scrutiny, Powell’s ongoing term will conclude in May, as the Justice Department delves into claims surrounding his congressional insights about the headquarters’ renovations. He expressed respect for the legal process but deemed the investigation “unprecedented” and politically motivated.
In a video statement, Powell said, “This new threat is not about my testimony last June or the renovations to the Federal Reserve’s building,” adding that potential criminal charges stem from the Fed’s decisions on interest rates, which he asserts align with public interest rather than presidential wishes.
When inquiries about the investigation were posed, the White House directed questions to the Justice Department, which did not respond promptly.
Concerning the renovation project, which is expected to cost around $2.5 billion, it is funded entirely by the Federal Reserve rather than taxpayers. The Fed finances itself mainly through interest on Treasury bonds and fees from financial institutions.
During a Senate Banking Committee meeting in June 2025, Powell clarified that the renovations are not extravagant, stating, “There’s no new marble… no special elevator.” He emphasized that the renovations aim to address safety concerns and outdated infrastructure.
Powell described the need for updates as fundamental, attributing part of the cost overruns to inflation and unexpected construction challenges. The completion of the project is anticipated in fall 2027, with employees in Washington expected to begin construction in March 2028.
