Fed Chairman Jerome Powell fears criminal indictment as Trump-Fed confrontation intensifies

In the latest escalation between the Trump administration and the Federal Reserve, the Department of Justice has issued grand jury subpoenas against the Fed, according to Chairman Jerome Powell.

On Sunday, the official Federal Reserve X account posted a video of Powell explaining the subpoenas and claiming that the DOJ was "threatening a criminal indictment related to my testimony before the Senate Banking Committee last June."

'The cost overruns are what they are.'

"That testimony concerned in part a multiyear project to renovate historic Federal Reserve office buildings," Powell added.

In the video, Powell shows no sign of capitulating to President Trump's calls to lower interest rates, dismissing these calls as merely 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."

RELATED: 'My new Fed Chairman': Trump hints at major changes coming to Federal Reserve amid great economic report

Photo by Chip Somodevilla/Getty Images

"I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment," Powell said. "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 that the subpoenas were served last Friday.

During his testimony in June, Powell was asked about the cost of the renovations around the 36-minute mark of the hearing. He began by saying, "We do take seriously our responsibility as stewards of the public's money," but concluded, "The cost overruns are what they are."

He also denied several of what he said were media inaccuracies, including reports of "special elevators," new marble, "roof terrace gardens," and "beehives."

In a rare confrontation with Powell, President Trump, wearing a hard hat, visited the construction site in late July to challenge him on the "overruns." Powell said he was "unaware" of the new numbers Trump presented to him.

Days before the July confrontation between Powell and Trump, Rep. Anna Paulina Luna (R-Fla.) sent a criminal referral for Powell to the Department of Justice.

On Sunday evening, Luna responded to the news of the grand jury subpoenas, repeating her allegations against Powell: "It’s good to see my criminal referral working in real time. You CANNOT lie to Congress. That is called PERJURY."

No criminal charges have been brought against Powell at the time of writing.

The Department of Justice did not respond to a request for comment from Blaze News.

Like Blaze News? Bypass the censors, sign up for our newsletters, and get stories like this direct to your inbox. Sign up here!