The U.S. Federal Reserve confirmed late 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 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.
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.
U.S. Fed Chair Powell under investigation
Iranian Foreign Minister Seyed Abbas Araghchi said on Monday that the situation in Iran is "under total control" following violence linked to protests that spiked over the weekend.
Addressing foreign diplomats in Tehran, the foreign minister noted that armed terrorist groups had infiltrated the protests, attempting to divert them from their legitimate course. He claimed that evidence has been gathered showing Iranian security forces being shot at, with the aim of causing further casualties. He accused the United States and Israel of exploiting the unrest to interfere in Iran's internal affairs.
Araghchi further stated that the government is closely monitoring developments on the streets, emphasizing that "the situation has come under control." He also affirmed that internet services, curtailed during the unrest, would be restored after coordination with security agencies.
The government has engaged in dialogue with merchants and protest representatives and initiated reforms to address grievances related to price hikes and currency depreciation. Iran has taken a series of actions and measures to respond to the demands of peaceful demonstrators, the foreign minister said.
Earlier on Sunday, Araghchi said that clear evidence links recent riots and vandalism of public facilities in Iran to the Israeli intelligence agency Mossad. This came after former U.S. Secretary of State Mike Pompeo mentioned Mossad agents operating on Iran's streets in a social media post. The Iranian foreign minister asserted that police are being attacked by "terrorists" acting under the direction of Israeli operatives, whom Pompeo publicly acknowledged.
The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and U.S. sanctions.
Iranian foreign minister says situation "fully under control," accuses Israeli intelligence of stoking unrest
