‘Make You Pay’: Jerome Powell Isn’t Backing Down as Critics Point to the Moment Trump Hit a Breaking Point — and His Next Move Is Raising Eyebrows
A criminal probe into Federal Reserve Chair Jerome Powell has ripped open a new political crisis, as lawmakers warn the Fed’s independence is under threat — and as Powell refuses to back down, critics are zeroing in on what they say set President Donald Trump off in the first place.
The U.S. attorney’s office in Washington revealed it had opened a criminal probe examining whether Powell misled Congress about the scope and cost of a multibillion-dollar renovation of the Fed’s headquarters, according to the New York Times, citing officials briefed on the inquiry.
The investigation was approved in November by Jeanine Pirro, a Trump ally appointed last year to lead the office, and includes a review of Powell’s testimony and internal spending records.
Trump’s response: He publicly distanced himself from the investigation over the weekend, even as he renewed his attacks on Powell’s leadership.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said of Powell in a brief interview with NBC News Sunday night.
Pressed on whether the Justice Department’s actions were connected to Powell’s refusal to lower interest rates, Trump rejected that idea while underscoring his central grievance.
“No. I wouldn’t even think of doing it that way. What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got,” Trump said.
“He’s hurt a lot of people,” he added. “I think the public is pressuring him.”
The investigation triggered swift backlash from lawmakers who view the move as a direct assault on the Fed’s independence. Sen. Thom Tillis, a North Carolina Republican and member of the Senate Banking Committee, announced he would block all Federal Reserve nominees until the matter is resolved.
“I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved,” Tillis said in a statement.
“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” he added.
Sen. Elizabeth Warren, the top Democrat on the Banking Committee, was even more blunt, accusing Trump of using federal law enforcement to bend economic policy to his will.
Trump is “abusing the authorities of the Department of Justice like a wannabe dictator so the Fed serves his interests, along with his billionaire friends,” Warren said.
Powell, for his part, has pushed back forcefully. In a public statement Friday night, he framed the subpoenas as part of a broader campaign of pressure tied not to the renovation project, but to the Fed’s refusal to bow to political demands on interest rates. Powell emphasized his respect for the rule of law while warning that the threat of criminal charges risks turning monetary policy into a tool of intimidation.
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He underscored his record of serving under both Republican and Democratic administrations, said he has acted without political favor, and made clear he intends to continue carrying out the job he was confirmed to do.
The renovation at the center of the investigation began in 2022 and is expected to run through 2027. Costs have ballooned to roughly $2.5 billion, about $700 million over initial estimates. The project modernizes the nearly century-old Marriner S. Eccles Building and a second structure on Constitution Avenue, addressing asbestos, lead contamination, accessibility requirements, and long-deferred infrastructure upgrades.
A 2021 proposal included amenities such as private dining rooms, upgraded marble, water features, and rooftop space, but Powell testified in June that many of those elements were no longer part of the plan.
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The moment that now looms large in the political fallout came months earlier, during a tense July site visit that featured Trump and Powell in hard hats alongside Senate Banking Committee Chair Tim Scott. Standing beside scaffolding, Trump accused the Fed of vastly understating the project’s cost.
“So we’re taking a look and uh it looks like it’s about 3.1 billion, it went up a little bit, or a lot. So the 2.7 is now 3.1,” Trump said.
Powell visibly recoiled, shaking his head before responding, “I’m not aware of that.”
When Trump insisted and handed Powell a folded document, Scott jumped in to reinforce the claim.
“I know it said about 3.1 as well—3.1, 3.2,” Scott said.
Powell donned his reading glasses and rejected the math outright.
“You’re including the Martin renovation. You just added in a third building is what that is,” Powell protested. “That’s a third building, including the Martin building.”
Trump argued it was part of the overall work, but Powell disagreed, saying, “No it was built five years ago. We finished Martin five years ago.”
That exchange has since taken on new meaning for critics, who argue it marked the point when Trump’s frustration hardened into retaliation.
“This was the moment Trump added Jerome Powell to his hit list,” one person wrote on Threads.
“What an idiot,” another commenter added.
“Trump Doesn’t Like it when someone makes him look STUPID Which is very easy to do,” read another reaction.
“I still laugh when this comes up. Powell just keeps standing ten toes down,” one post said.
Beyond the investigation itself, the episode has renewed questions about Powell’s future. His term as chair ends in May, though his seat as a governor runs through 2028. Powell has repeatedly declined to say whether he will remain at the Fed, telling reporters late last year, “I’m focused on my remaining time as chair.”
Powell’s departure would immediately give Trump-appointed governors a majority on the Fed’s board, potentially reshaping rate policy and weakening longstanding protections against political interference. While past chairs quietly stepped away, Powell’s potential ouster reflects the extraordinary pressure now bearing down on the institution.
As the Justice Department inquiry moves forward, public reaction has only intensified, with critics framing the case as another example of political vengeance.
“It’s called a narcissistic injury. If you shame them they will go to the ends of the earth to make you pay. Look at Comey, James, Willis….” one person wrote.