Criminal Investigation Launched Against Fed Chair Jerome Powell

Thu Feb 19 2026 21:37:35 GMT+0200 (Eastern European Standard Time)

Federal prosecutors have opened a criminal probe into Jerome Powell, raising eyebrows amid ongoing tensions with former President Trump over interest rates.

Federal Reserve Chairman Jerome Powell is under investigation by the US Justice Department due to accusations stemming from his Senate testimony about renovations at Federal Reserve buildings. Powell described the probe as 'unprecedented' and suggested it might be motivated by Trump's dissatisfaction with his refusal to lower interest rates. As the tension between the Fed and Trump continues, the investigation has led to increased scrutiny on the independence of the Federal Reserve and its ability to function free from political pressure.

Federal prosecutors have opened a criminal investigation into Federal Reserve Chairman Jerome Powell, he said on Sunday.

In a video announcing the probe, Powell revealed that the US Justice Department served the agency with subpoenas and threatened a criminal indictment over his testimony to a Senate committee regarding renovations to Federal Reserve buildings.

Powell called the probe 'unprecedented' and suggested it was sparked by his refusal to lower interest rates under pressure from former President Donald Trump.

As this controversy unfolds, Powell aligns himself with past officials who have faced investigations following conflicts with Trump. He emphasized the importance of the Fed's independence, stating, 'This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions.'

Trump responded by denying knowledge of the investigation while criticizing Powell's performance. Meanwhile, continued tensions over monetary policy and independence of the Federal Reserve have led to increasing market volatility, evidenced by a spike in gold and silver prices amidst the probe's announcement.