A Justice Department criminal investigation, criticism from senior Trump administration officials and an imminent successor announcement set the stage for a politically charged exchange that Federal Reserve Chairman Jerome Powell largely avoided on Wednesday.

Powell spoke after the Fed’s decision to cut interest rates, marking his first appearance since the Justice Department opened a criminal investigation into his congressional testimony on the Fed’s headquarters renovation.

Jerome Powell, chairman of the U.S. Federal Reserve, during a news conference after a meeting of the Federal Open Market Committee in Washington, DC, Wednesday, May 7, 2025. (Tierney L. Cross/Bloomberg/Getty Images/Getty Images)

Reporter: “Can you say if the Fed has responded to the subpoenas?”
Powell: “I have nothing for you today.”

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In a separate line of questioning, Powell was asked if he would stay at the Federal Reserve his term as presidentwhich ends in May.

Reporter: “Has he made a decision on whether he would continue as governor of the Federal Reserve?”
Powell: “No, and once again, I have nothing for you today.”

Reporter: “Why would you want to leave under any circumstances?”
Powell: “Again, I don’t want to get into that. There’s a time and a place for those questions, and it’s not something I’m going to get into today.”

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Asked about the talks with lawmakers, Powell also declined to discuss them.

Reporter: “Republican Sen. Thom Tillis, who sits on the Senate Banking Committee, said he will block any Fed nominee, including the chairman, until this investigation into you is resolved. Do you support this move by the senator? And what conversations have you had with the senator?

Powell: “I have nothing for you about it.”

Powell referred questions about the probe to his rare video statement on Jan. 11, an abrupt break from his usually measured approach. He confirmed the investigation and said he respected the rule of law and congressional oversight, but called the action “unprecedented” and driven by political pressure.

“This new threat is not about my testimony last June or the renovation of the Federal Reserve buildings,” Powell said in a January 11 video statement.

“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 president’s preferences,” he added.

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Construction of the Marriner S. Eccles Federal Reserve Building in Washington, DC on July 14, 2025. (Al Drago/Bloomberg via Getty Images)

The project to update the The Federal Reserve Two major Washington, DC office buildings in the Foggy Bottom neighborhood are expected to cost $2.5 billion and be paid for by the central bank, not taxpayers. The Fed finances its operations without appropriations from Congress, earning income primarily from interest on government securities and fees charged to financial institutions.

In June 2025, Powell told members of the Senate Banking Committee that “There is no new marble. There are no special elevators. They are old elevators that have been there. There are no new water fountains. There are no beehives and there are no garden terraces on the roof.”

Powell also told lawmakers that no one “wants to do a major renovation of a historic building during his tenure.”

“We decided to take it on because, frankly, when I was the acting governor, before I became president, I understood how badly the Eccles building really needed serious renovation,” Powell said, adding that the building is “not really safe” and not watertight.