Federal prosecutors have opened a criminal investigation into Federal Reserve Chairman Jerome Powell, he said on Sunday.

In a video announcing the probe, Powell said the US justice department served the agency with subpoenas and threatened a criminal indictment over testimony he gave to a Senate committee about renovations to Federal Reserve buildings.

He called the probe “unprecedented” and said he believed it was opened due to him drawing President Donald Trump’s ire over refusing to lower interest rates despite repeated public pressure from the president.

The Fed chair is the latest to come at odds with Trump and then face criminal investigation by the US justice department.

“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,” Powell 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, but this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” he went on to say.

Powell has repeatedly come under fire from Trump for not cutting interest rates as quickly as the president have liked. In the second half of 2025, the Fed cut interest rates three times.

North Carolina Senator Thom Tillis, a Republican who is a member of the Senate Banking Committee, said he would oppose the nomination of Powell’s replacement by Trump, and any other Fed Board nominee, “until this legal matter is fully resolved”.

“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” Tillis said in a statement.

“It is now the independence and credibility of the Department of Justice that are in question,” the senator said.

The investigation will be overseen by the US Attorney’s Office for the District of Columbia, according to the New York Times, which first reported the probe.