Jerome Powell is the latest public official to face Justice Department scrutiny as the Trump administration expands its investigations into perceived political opponents, this time questioning Powell’s congressional testimony about the Fed’s renovation project. Prosecutors allege that Powell falsely testified that amenities including marble, private elevators, a rooftop terrace and dining rooms were not included in the renovation plans.
Powell’s Testimony And The Disputed Renovation Details
While a 2021 proposal of the Fed’s renovation plans included these items, Powell testified under oath, “There’s no V.I.P. dining room; there’s no new marble. We took down the old marble; we’re putting it back up. We’ll have to use new marble where some of the old marble broke. But there’s no special elevators. There’s just old elevators that have been there before.” Powell went on to say that plans for the renovations had changed during the renovation project.
According to Powell, the Fed received grand jury subpoenas from the Justice Department last week threatening a criminal indictment.
Powell responded through a video statement Sunday night, in which he called the investigation a pretext as part of President Trump’s continuing campaign to pressure the Fed to lower interest rates and end the independence of the Fed.
“Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people,” Powell said.
A Broader Pattern Of Political Targeting
While Trump campaigned against the weaponizing of the Justice Department by the Biden administration in the 2024 election, Trump has far exceeded such actions beyond anything he even accused the Biden administration of doing.
Beyond the very unsuccessful public attempts to prosecute former FBI Director James Comey and New York Attorney General Letitia James, a comprehensive investigation by Reuters found at least 470 people, organizations and institutions perceived as political opponents have been targeted for legal actions.
Trump had previously threatened a lawsuit against Powell over the renovation of the buildings. In December, Trump said he was considering suing Powell for gross incompetence over the cost of renovations to the Fed building, now pegged at $4 billion, an increase of more than approximately $1.5 billion from original projections.
What The Fed Renovation Actually Involves
The renovation project which started in 2022 will expand and modernize the Marriner S. Eccles Building and another building used by the Fed. Both buildings have not been substantially updated since the 1930s. The renovations include removing asbestos and lead contamination, upgrading electrical, plumbing, HVAC and ventilation systems, and bringing the buildings into compliance with accessibility regulations and modern security standards. Due to the high groundwater levels present at the site, heavy duty underground work, groundwater management and structural enhancements to stabilize the foundations were required. In fact, the foundation work was so complicated that the contractors received a 2025 award for “excellence in the face of adversity” from the Washington Building Congress, a building trades organization.
Why The Price Tag Has Grown
According to the Fed, the increase in costs is largely attributable to differences in the estimated and actual costs of material, equipment and labor, finding more asbestos than originally anticipated and discovery of toxic contamination in the soil. It should also be noted that steel prices have increased by 60% since original estimates and tariff-related increases in materials have also contributed to the increase in the cost of the project.
The Legal Case Against Powell — And Its Weaknesses
The charges related to Powell’s Congressional testimony would be brought under 18 U.S.C. Section 1001, which requires that prosecutors must prove beyond a reasonable doubt that false statements were made knowingly and willfully. Prosecutors must also prove that the statements were material, meaning that they could influence the proceeding. Powell’s testimony regarding the questioned features that are no longer part of the current plan for the renovations undercuts the statements as knowingly false. As to materiality, his testimony was not material to Congress’ oversight function since the particular amenities were no longer part of the plans; thus the any charges under 18 U.S.C. Section 1001 would fail on both requirements.
Less clear are statements Trump has made about prosecuting Powell for gross incompetence and misuse of taxpayer funds. The Justice Department declined to comment on any specific investigation, saying in a statement that Attorney General Pam Bondi “has instructed her U.S. Attorneys to prioritize investigating any abuse of tax payer dollars.”
It should be noted that taxpayers’ dollars are not involved with the cost of the renovations because the Fed is self-financed, supporting itself on income from its holdings of Treasury bonds.
How Trump’s Own Construction Costs Compare
A comparison of the Trump privately financed construction of the 90,000-square-foot ballroom at the White House is interesting to make, with the initial cost estimate in July of 2025 of $200 million rising in a mere six months to $400 million. Like the Fed’s renovations, the ballroom is not being funded by taxpayer money, but rather private donations; however, the private donations in many instances appear suspect with donor companies receiving federal contracts totaling an estimated $279 billion, according to Public Citizen, the Ralph Nader-founded consumer advocacy organization.