On Sunday night, President Trump claimed he was unaware of the Justice Department’s inquiry into Federal Reserve Chairman Jerome Powell, which could lead to a subpoena and possible indictment for lying to Congress.
“I don’t know anything about that, but he’s certainly not very effective at the Fed, and he’s not great at construction,” the president said during a brief NBC News interview.
Powell, 72, confirmed the subpoena and indictment threat in a statement late Sunday, creating ripples in the global economy.
The Fed chair faced intense questioning from the Senate Banking Committee in June about the $2.5 billion renovation of the central bank’s headquarters in D.C., a project initially reported on by the Post in April. A former board member had described this renovation as “Versailles on the National Mall.”
Powell has denied allegations that the project included luxury features highlighted in its approved planning documents from 2021.
“There’s no VIP dining room, no new marble. No special elevator,” he stated at his June 25 swearing-in. “There’s no new water system, no beehive, and no rooftop terrace garden.”
In July, Trump toured the construction site with Powell, and both men responded to reporters while donned in ill-fitting business attire and hard hats.
During their visit, a public debate erupted over the project’s actual cost, with Powell arguing that Trump unfairly included additional renovations.
On December 29, Trump took to social media to express concerns that the renovation costs would exceed $4 billion, even hinting at a lawsuit against Powell for “gross incompetence.”
Though the president has often criticized Powell for being slow to lower interest rates, he insisted on Sunday that the investigation wasn’t intended to influence the Fed’s decisions. “I wouldn’t think about doing it that way,” Trump stated. “What should be pressuring him is the high interest rates. That’s his real issue.”
“He has hurt a lot of people,” Trump continued. “I believe the public is putting pressure on him.”
Powell’s term will end in May, and President Trump is expected to announce his successor in the coming weeks. After leaving his position as chairman, Powell plans to stay on the Fed board until 2028.
