Trump Distances Himself from DOJ Probe into Federal Reserve, Amid Accusations of Revenge Against Fed Chair Jerome Powell
On January 12, 2026, reports emerged of a U.S. Department of Justice (DOJ) criminal probe and subpoenas targeting the Federal Reserve, focusing on alleged cost overruns in its building renovation projects. This action is widely viewed as political retaliation by President Donald Trump against Federal Reserve Chair Jerome Powell, who has resisted calls to lower interest rates aggressively. Trump has publicly attempted to distance himself from the investigation, but statements from Republicans and critics suggest otherwise, framing it as an abuse of power to undermine the Fed’s independence.
Background and Key Events
The probe centers on the Federal Reserve’s renovation of the Marriner S. Eccles Building and another structure on Constitution Avenue, a project initiated in 2022 and projected to last until 2027. Initial costs were estimated at $1.8 billion, but they have ballooned to around $2.5 billion due to factors like asbestos removal, lead abatement, accessibility improvements, and infrastructure upgrades. A 2021 proposal included luxury features such as private dining rooms, enhanced marble, water features, and rooftop spaces, though many were later scaled back, as Powell testified before Congress in June.
Tensions escalated during a July 2025 site visit attended by Trump, Powell, and Senate Banking Committee Chair Tim Scott, where all wore hard hats. Trump accused the Fed of underreporting costs, claiming they had risen from $2.7 billion to $3.1 billion, and presented Powell with a document. Powell countered that Trump was including a third building (the Martin Building, renovated five years earlier), responding with, “I’m not aware of that,” and later, “You’re including the Martin renovation. You just added in a third building is what that is.”
The DOJ subpoenas, issued recently, are seen as part of a broader pressure campaign tied to Powell’s refusal to cut rates, rather than genuine concerns over the renovations. Powell’s term as Fed Chair ends in May 2026, with his governor position extending to 2028; his potential ouster could allow Trump appointees to gain a majority on the board, influencing monetary policy.
Trump’s Statements and Distancing Efforts
In a Sunday night NBC News interview on January 11, 2026, Trump denied involvement in the probe, stating, “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,” referring to Powell. When asked if the investigation related to interest rates, Trump replied, “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,” adding, “He’s hurt a lot of people,” and emphasizing public pressure as the driver.
Republican Admission and Pushback
A key admission came from Republican Sen. Roger Marshall on Fox Business, who described the probe as Trump “almost trolling here,” suggesting the nation has “bigger issues to go after than this one.” This blunt statement underscores perceptions of the investigation as petty rather than substantive. Other Republicans expressed concern: Sen. Lisa Murkowski, after speaking with Powell, called it “nothing more than an attempt at coercion.” Sen. Thom Tillis vowed to block all Fed nominees, including for the upcoming chair vacancy, until resolved, stating, “I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved,” and noting “no doubt” that Trump advisers are eroding Fed independence.
Other Reactions
Democrat Sen. Elizabeth Warren accused Trump of “abusing the authorities of the Department of Justice like a wannabe dictator so the Fed serves his interests, along with his billionaire friends.” Powell issued a statement on Friday, January 9, 2026, affirming the Fed’s commitment to the rule of law and independence, saying it acts “without political favor” and that he would continue serving under both parties.
Public Reaction on X
The story has sparked criticism on X, with users framing it as part of Trump’s pattern of vendettas. For instance, @anti_malice posted, “Trump loves revenge more than he loves stability or responsibility,” linking to a CNBC article on the probe. @1drcole called it “peak authoritarian pettiness,” accusing Trump of undermining Fed independence over renovations. @58bugeye shared a video urging reposts in support of Powell, warning of negative impacts on Americans from the “retribution vendetta indictment.” Pro-Trump voices, like @monty0102, criticized Powell for “revenging against Trump,” while @xray_media labeled it “banana republic tactics” exposing “tyranny.” Earlier posts, such as @profstonge’s analysis, predicted Trump’s feud with Powell as a strategic move in economic “game theory pincers.” Overall, reactions highlight fears of eroded institutional independence and economic fallout.