Washington, D.C., is abuzz as Federal Reserve Chairman Jerome Powell revealed a stunning development involving grand jury subpoenas served to the central bank by U.S. prosecutors.

On Sunday night, Powell announced via a video statement on the Fed’s official account on X.com that the Justice Department delivered the subpoenas on Friday, targeting his June testimony before the Senate Banking Committee about the Fed’s ongoing $2.5 billion renovation project in Washington, D.C., with federal prosecutors even threatening a criminal indictment.

The issue has sparked intense debate over the independence of the Federal Reserve and whether political pressures are encroaching on monetary policy decisions.

Powell’s Testimony and Renovation Under Scrutiny

In June of last year, Powell testified before the Senate Banking Committee, partly discussing the massive renovation of the Fed’s headquarters, according to Breitbart News.

Fast forward to July, and President Donald Trump was touring the construction site alongside Powell, only to later express frustration over the ballooning costs, now pegged at $2.5 billion.

By August, Trump was mulling a “major lawsuit” against Powell and the Fed over what he saw as mismanagement of the project.

Trump’s Criticism and Fed Independence

Trump’s dissatisfaction with Powell isn’t new; during his first term, he repeatedly criticized the Fed for raising interest rates, and since returning to the White House, he’s kept up the heat, pushing for rate cuts.

“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump told NBC News, tossing a sharp jab at Powell’s dual role as policy chief and construction overseer.

That quip aside, one has to wonder if the Fed can truly operate without the shadow of political interference when the president’s disdain is so public.

Justice Department’s Role Raises Eyebrows

The New York Times reported that the inquiry into Powell’s testimony and the renovation was greenlit in November by Jeanine Pirro, U.S. Attorney for the District of Columbia.

A government official confirmed prosecutors are indeed digging into the Fed’s affairs, though Trump has denied any knowledge of the investigation.

Still, the timing and focus of this probe—right down to threatening criminal indictment—smell like a message to Powell: toe the line or face the consequences.

Political Pressure or Legitimate Oversight?

Powell himself isn’t mincing words, stating, “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.”

That’s a fair concern when you’ve got subpoenas flying and a president who’s been vocal about wanting lower rates and unhappy with a $2.5 billion construction tab.

While accountability for public funds is crucial—especially with a renovation cost that’s ballooned beyond reason—the Justice Department’s heavy hand feels less like oversight and more like a political cudgel, especially given Trump’s history of pressuring the Fed and even attempting to oust governor Lisa Cook, a move blocked by a federal judge with Supreme Court arguments set for January.