Claim
Mainstream media reports and commentators have suggested or implied that the Department of Justice’s (DOJ) criminal probe into Federal Reserve Chair Jerome Powell was initiated or driven by President Donald Trump, often framing it as part of his efforts to pressure or remove Powell over monetary policy disagreements.
Rating: FALSE
The probe originated from a formal criminal referral submitted by a member of Congress in July 2025. While Rep. Anna Paulina Luna (R-FL), who made the referral, is a Republican, and Trump has publicly criticized Powell, there is no evidence that Trump directed the DOJ to open the investigation. Trump has repeatedly denied any knowledge or involvement in the probe.
Background
The origins of the investigation trace back to congressional oversight, not executive intervention. On July 19, 2025, U.S. Representative Anna Paulina Luna (R-FL) formally submitted a criminal referral to the DOJ, accusing Powell of perjury and making false statements during his sworn testimony before Congress.
Luna’s action followed Powell’s appearances on On June 25, 2025 before the House Financial Services Committee and the Senate Banking Committee, where he addressed questions about the Federal Reserve’s activities. He described changes as minor, aimed at simplifying construction to avoid further delays, and denied certain luxury features (e.g., VIP dining room, premium marble, water features, roof terrace garden) were included as originally planned.
The Referral and Reasons
On July 19, 2025 (with announcements around July 17–21), Rep. Anna Paulina Luna formally referred Powell to the DOJ for potential perjury (18 U.S.C. § 1621) and making false statements to federal officials. The referral, sent to Attorney General Pam Bondi, cited:
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Powell’s Senate testimony allegedly misrepresenting the project’s scope, luxury elements, and cost overruns, contradicted by documents submitted to the National Capital Planning Commission and congressional reviews.
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Correspondence with former OMB Director Russell Vought allegedly mischaracterizing project changes that added $600 million to the budget.
Luna stated:
“Chairman Powell knowingly misled both Congress and executive branch officials about the true nature of a taxpayer-funded project. Lying under oath is a serious offense—especially from someone tasked with overseeing our monetary system and public trust.”
She emphasized congressional oversight and called for a formal DOJ investigation into whether Powell’s actions met criminal thresholds.
The DOJ later opened a probe, issuing grand jury subpoenas to the Federal Reserve in early January 2026. Powell publicly acknowledged the investigation on January 11–12, 2026, calling it “unprecedented” and a pretext tied to policy pressure rather than the renovation testimony.
Debunking Allegations of Trump’s Involvement
Some coverage links the probe to Trump by noting Luna’s Trump support, the timing amid White House criticisms, and Trump’s past threats to fire Powell. Headlines and commentary have implied coordination, such as framing it as justification for removal or part of a “crusade” against the Fed.
However, criminal referrals are a standard congressional tool—any lawmaker can submit one to the DOJ without executive approval.
Luna’s action followed her committee’s review and public threats to refer Powell, independent of direct White House input. Trump has explicitly denied involvement, stating in January 2026 interviews (e.g., with NBC News) that he was “in the dark,” had “no knowledge” of the probe, and that it had nothing to do with interest rates—though he reserves the right to criticize Powell’s performance.
Powell has described the probe as politically motivated pressure over rates, but the documented trigger remains Luna’s July 2025 referral focused on perjury related to renovation testimony. Conflating congressional action with presidential orchestration overlooks separation of powers and the independent DOJ process.
Conclusion
The DOJ probe into Jerome Powell stems from Rep. Anna Paulina Luna’s July 19, 2025, criminal referral alleging perjury in his Senate testimony about the Federal Reserve’s $2.5 billion headquarters renovation.
While politically charged given alignments and broader tensions, the initiation was congressional—not executive. Attributing it directly to Trump is wrong, as he has denied involvement, and the process aligns with standard oversight mechanisms. This highlights the need to distinguish institutional actions from political narratives.
The claim that President Trump triggered the probe into Fed and Powell is FALSE.
Sources
Here are key sources referenced in this fact check (publication dates range from July 2025 to January 12, 2026):
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Official press release from Rep. Luna’s office: https://luna.house.gov/posts/rep-anna-paulina-luna-refers-federal-reserve-chair-jerome-powell-for-criminal-investigation-over-false-testimony
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ABC News on DOJ probe launch: https://abcnews.go.com/Politics/doj-launches-criminal-investigation-fed-chair-jerome-powell/story?id=129114228
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Washington Examiner overview: https://www.washingtonexaminer.com/policy/finance-and-economy/4415360/what-we-know-doj-investigation-powell/
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Bloomberg on Luna’s referral: https://www.bloomberg.com/news/articles/2025-07-21/gop-s-luna-refers-powell-perjury-claim-to-justice-department
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Fox News exclusive on referral details: https://www.foxnews.com/politics/fed-chair-jerome-powell-hit-criminal-referral-house-gop-trump-ally
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Newsweek on Trump ally’s accusation: https://www.newsweek.com/jerome-powell-criminal-charges-doj-trump-ally-fed-2101884
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NBC News on Trump’s denial: https://www.nbcnews.com/politics/donald-trump/trump-denies-involvement-doj-fed-subpoena-jerome-powell-rcna253526
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The New York Times on probe opening: https://www.nytimes.com/2026/01/11/us/politics/jerome-powell-fed-inquiry-trump.html
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POLITICO on backlash to probe: https://www.politico.com/news/2026/01/11/doj-probe-fed-powell-statements-headquarters-00721679
