Powell’s behind-the-scenes move after Trump’s DOJ opened its criminal probe

Federal Reserve Chair Jerome Powell held phone calls with lawmakers in the days after the Justice Department announced its probe.(Al Drago/Bloomberg via Getty Images)

Still, the week of Jan.11 stood out even for Powell.The last time he reached more lawmakers in a single week was February 2025, ahead of his semiannual testimony, when he typically schedules a run of prehearing calls with key members.

Read More → I served with my dog Dasty in Afghanistan.Dogs are man’s best friend on the battlefield

This burst was different, though it followed Powell’s Jan.11 disclosure that the Justice Department had opened a criminal investigation tied to his congressional testimony on theFederal Reserve’stwo historic main buildings on the National Mall.

Powell, in a rare video statement, called the probe “unprecedented” and described it as another salvo in what he described as PresidentDonald Trump’spressure campaign on the central bank to cut rates.The unusually public response followed days of private consultations with advisors and stood out for a Fed chair known for a measured approach.

The investigation centers on Powell’s June 2025 testimony to lawmakers, an unusual development for a sitting Fed chair.

TRUMP VS THE FEDERAL RESERVE: HOW THE CLASH REACHED UNCHARTED TERRITORY

The grand atrium of the Marriner S.Eccles Federal Reserve building is under construction on July 24, 2025.(Andrew Harnik/Getty Images)

Testifying before the Senate Banking Committee, Powell said: “There’s no new marble.There are no special elevators.They’re old elevators that have been there.There are no new water features.There are no beehives, and there’s no roof garden terraces.”

Powell added that no one “wants to do a major renovation of a historic building during their term in office,” and said cost overruns were driven in part by unexpected construction challenges and inflation.

Read More → Researchers pinpoint source of black hole’s 3,000-light-year-long jet stream using enhanced telescope network

The renovation isestimated to cost $2.5 billionand is being funded by the central bank itself, not by taxpayers.

The Fed is self-financing and does not rely on congressional appropriations to cover its operating expenses, which include employee salaries, facilities maintenance and the current renovation.Its primary income comes from interest earned on government securities and fees charged to financial institutions.

onelink.me/xLDS?pid=AppArticleLink&af_web_dp=https%3A%2F%2Fwww.

Read More → Biden-appointed judge in the hot seat after DHS fires back at ‘false’claims about ICE facility

President Donald Trump nominated Powell to lead the Federal Reserve in 2017.(Official White House Photo by Daniel Torok)

Trump has repeatedly targeted the project, threatening legal action and mocking the renovation’s cost and design.

“They’re building a basement into the Potomac River.I could have told them.That’s very tough to do, and it doesn’t work, and it’s very expensive,” Trump said.“But they’re up to $4 billion, headed by this clown,” he addedin November,referring to Powell.

Powell, a Trump nominee first tapped to lead the Fed in 2017, is expected to finish his term at the end of May.Trump has picked former Fed governorKevin Warshto replace Powell, but the nomination is effectively stuck after Sen.Thom Tillis vowed to block any Fed nominees while the DOJ probe remains open.

The Federal Reserve declined to comment on Powell’s calendar.