The U.S. Federal Reserve confirmed late on Sunday that the federal prosecutors are investigating Fed Chair Jerome Powell over the central bank's multi-billion-dollar project to renovate its headquarters.

In a public statement posted on the website of the Federal Reserve late on Sunday, Powell said the Department of Justice on Friday served the Fed with grand jury subpoenas "threatening a criminal indictment related to my testimony before the Senate Banking Committee last June. That testimony concerned, in part, a multi-year project to renovate historic Federal Reserve office buildings."

"This unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure," Powell said. "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."

"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation," he said.

"I have deep respect for the rule of law and for accountability in our democracy. No one – certainly not the chair of the Federal Reserve – is above the law," Powell said.

Powell stressed that he "will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people."

The U.S. Attorney's Office for the District of Columbia is overseeing the investigation, local media reported.

Ever since taking his office in January 2025, U.S. President Donald Trump has repeatedly criticized Powell for not cutting interest rates as much and as quickly as he demanded.

Powell was first appointed Fed chair by President Donald Trump in 2018 and reappointed to a second term by former President Joe Biden in 2022. His current term is set to expire in May 2026.