The DOJ subpoenas the Fed over a $2.5B renovation, with Powell calling it a political move to pressure rate cuts.

The Federal Reserve has received grand jury subpoenas from the U.S. Department of Justice regarding its $2.5 billion headquarters renovation. Chair Jerome Powell has described the investigation as a politically motivated attempt to coerce the central bank into cutting interest rates. Powell said that his June Senate testimony regarding cost overruns is the reason for the threat of criminal charges, but he stressed that it is part of larger efforts to weaken the Fed's independence in determining monetary policy based on economic data rather than political influence. The U.S. Attorney's Office for the District of Columbia is conducting the investigation in the midst of ongoing hostilities with President Trump, who has threatened to fire Powell before his term expires in May 2026 and frequently criticized the Fed's rate decisions.