The US Justice Department has launched a criminal probe into Federal Reserve Chair Jerome Powell.
The central bank said an investigation had been opened into the renovation of its headquarters last summer - and allegations that Mr Powell lied to Congress about how much it cost.
Mr Powell accused the DOJ of using the threat of criminal prosecution to pressure him to lower interest rates - for which Donald Trump has pushed for a long time.
Mr Trump's administration has used the spiralling cost of the new HQ as an attack line againt the Fed Chair.
TRENDING
Stories
Videos
Your Say
The President himself has labelled Mr Powell a "numbskull" over his refusal to slash interest rates to one per cent.
The Chair, who is set to step down in May, has previously pushed back against accusations by Trump ally Russell Vought that he had misled Congress over the renovation of the Fed's offices.
On Sunday night, Mr Powelll said that newly-issued grand jury subpoenas were an unprecedented challenge to the Federal Reserve's independence.
Jerome Powell (right) accused the DOJ of using the threat of criminal prosecution to pressure him to lower interest rates
|GETTY
"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," he said in a testy statement.
"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," Mr Powell added.
In a video message, he added: "This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings.
LATEST FROM WASHINGTON DC:
Donald Trump made a rare presidential visit to the over-budget site last summer, and Jerome Powell gave him a tour
|REUTERS
"It is not about Congress's oversight role.
"The Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project.
"Those are pretexts. 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."
Jerome Powell accused the White House of trying to use political pressure or intimidation to force down interest rates
|REUTERS
In June 2025, when Mr Powell gave his usual twice-yearly testimony on monetary policy to Congress, he was asked repeatedly about the work.
He said it involved necessary updates to outdated infrastructure.
Then in July, Mr Trump made a rare presidential visit to the site, and Mr Powell gave him a tour.
More From GB News