Jerome Powell: DOJ Investigation, Salary, and Trump Feud

Few people expected the chairman of the Federal Reserve to become the target of a federal criminal investigation, but that’s exactly what happened to Jerome Powell in 2025. The probe, focused on his testimony about a multibillion-dollar headquarters renovation, pitted the nation’s top central banker against the Justice Department and, many believe, the political pressure of the Trump administration. This article lays out what Powell was accused of, how the case unfolded, and what it means for the independence of the Fed.

Role: Chair of the Federal Reserve ·
Appointed by: President Donald Trump (2018) ·
Term ends: May 2026 ·
Annual salary: $203,500 ·
Years on Board: Since 2012 ·
Age: 73 (born 1953)

The table below summarizes Powell’s background and tenure at the Fed.

What is Jerome Powell accused of?

The criminal investigation by the Department of Justice

• In November 2025, federal prosecutors in Washington, D.C., opened a criminal investigation into Jerome H. Powell concerning the Federal Reserve headquarters renovation and whether he made false or misleading statements to Congress, according to Wikipedia’s article on the investigation.
• The inquiry was reportedly approved by U.S. Attorney Jeanine Pirro and involved review of Powell’s congressional testimony and internal spending and planning records (Wikipedia – investigation page).
• ABC News reported that Powell released a video statement confirming a criminal investigation had been launched into him (ABC News – breaking news).
• PBS reported that the renovation project was described as a roughly $2.5 billion effort (PBS NewsHour – analysis).

Allegations of political bias and rate decisions

• Powell said in January 2026 that the Justice Department had served the Federal Reserve with grand jury subpoenas and threatened a criminal indictment related to his testimony about the renovation project (Wikipedia).
• CBS News video reporting said Powell framed the matter as political retaliation tied to the Federal Reserve’s independence and interest-rate decisions (CBS News YouTube – report).
• CNN video reporting said the probe was seen as part of a months-long attack on Fed independence (CNN YouTube – analysis).
• PBS reported that Republican senators criticized the subpoenas as a pretext to pressure Powell into cutting interest rates (PBS NewsHour).

Why the DOJ dropped the investigation

• The Department of Justice dropped the investigation on April 24, 2026, according to Wikipedia.
• NBC reported that the Fed inspector general had already reviewed the project twice and found no wrongdoing (NBC News YouTube – report).
• ABC News reported that Trump denied involvement in the criminal investigation in a brief interview with NBC News (ABC News).
• No criminal charges were filed against Powell as of April 2026 (Wikipedia).

Why did Trump appoint Jerome Powell?

Powell’s background as a lawyer and financier

• Trump nominated Powell in November 2017, and he took office as Fed chair on February 5, 2018 (Wikipedia).
• Powell was already a Fed board member since 2012, appointed by President Barack Obama (Wikipedia).
• Before the Fed, Powell was a partner at the Carlyle Group, an investment firm, and earlier practiced law (Wikipedia – biography).

Bipartisan appeal and previous Fed board experience

• Powell’s bipartisan credentials — he had served under both a Democratic and a Republican president — made him a consensus pick (Wikipedia).
• He was confirmed by the Senate with 84 votes, a strong bipartisan margin (Wikipedia).
• Trump expected Powell to keep interest rates low to boost the economy ahead of the 2020 election (PBS NewsHour – context).

Trump’s original confidence in Powell

• Trump publicly praised Powell after his appointment but soon turned critical when the Fed raised rates in 2018 (Wikipedia).
• By mid-2019, Trump was calling Powell an “enemy” and threatening to demote him (Wikipedia).
• Despite the tension, Biden reappointed Powell in 2022, signaling institutional support (Wikipedia).

The pattern: Trump’s original confidence in Powell was rooted in a shared party affiliation and a perceived alignment on low-interest-rate policy. When Powell acted independently, the relationship fractured, setting the stage for the later criminal investigation under the Trump administration.

Can the president remove the Fed chair?

Legal grounds for removal: ‘for cause’

• The Federal Reserve Act allows removal of a Fed governor only “for cause,” meaning inefficiency, neglect of duty, or malfeasance (Wikipedia – Federal Reserve Act).
• There is no specific provision for removing the chair alone; a chair serves at the president’s pleasure in that role, but the board seat remains protected (Wikipedia).
• Legal scholars note that “for cause” has never been tested at the Supreme Court for a Fed chair (Wikipedia).

Historical precedent: no Fed chair has been fired

• No Fed chair has ever been removed before term expiration (Wikipedia – Chair of the Federal Reserve).
• William McChesney Martin (appointed 1951) served under five presidents despite political differences (Wikipedia).
• Arthur Burns and Paul Volcker also faced political pressure but completed their terms (Wikipedia).

What happens if Trump tries to remove Powell

• Powell could challenge removal in court, arguing the “for cause” standard protects his board seat (Wikipedia).
• A bipartisan coalition of former Fed chairs and economists compared hypothetical removal actions to tactics seen in less affluent nations, according to PBS NewsHour.
• CNN reported that the investigation’s basis appeared to be a June 2025 Senate testimony by Powell to the Senate Banking Committee, effectively making the removal debate a live political issue (CNN YouTube).

The pattern: The legal safeguards for Fed independence have held historically, but the 2025 investigation introduced a new dimension of political risk.

What is Jerome Powell’s net worth and salary?

Powell’s annual salary as Fed chair

• Powell’s salary as Fed chair is $203,500 per year, as disclosed on Wikipedia.
• This salary is set by Congress for the Fed chair position and is lower than what many investment bankers earn (Wikipedia).

Estimated net worth from prior career at Carlyle Group

• Powell’s net worth is estimated between $50 million and $100 million, primarily from his time as a partner at the Carlyle Group and board seats (Wikipedia).
• He also held positions at Dillon Read, an investment bank, and served on corporate boards (Wikipedia).
• Public financial disclosures are required for Fed officials, but exact net worth is not disclosed (Wikipedia).

Public disclosure requirements

• Federal Reserve board members must file annual financial disclosure reports with the U.S. Office of Government Ethics (Wikipedia).
• These reports list assets and liabilities in broad ranges, not exact figures (Wikipedia).

When does Jerome Powell’s term end?

Chair term length and expiration date

• Powell’s term as Fed chair ends in May 2026 (Wikipedia).
• He was first appointed as chair in February 2018 and reappointed for a second term starting May 2022 (Wikipedia).
• His board seat (as a governor) expires in 2028, meaning he could remain on the board beyond the chair term (Wikipedia).

Reappointment process and possibility of early departure

• The president nominates the Fed chair subject to Senate confirmation for a four-year term (Wikipedia).
• Powell could resign voluntarily, but there is no public indication he will (Wikipedia).
• Forced removal before term end is legally uncertain and politically explosive (Wikipedia).

What happens if Powell leaves before term

• If Powell resigns or is removed, a new chair would be nominated by the president and confirmed by the Senate (Wikipedia).
• The vice chair (currently Philip Jefferson) would become acting chair until a successor is confirmed (Wikipedia).
• Historical precedent: Fed chairs have almost always completed their terms despite political differences (Wikipedia).

In their own words

“I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties.”

— Jerome Powell, January 2026 statement, as reported by Wikipedia

“Department of Justice drops criminal investigation into Federal Reserve Chair Jerome Powell.”

— DOJ statement, April 2026, as reported by Wikipedia

Powell made a rare rebuke against Trump after the investigation became public.

— Wikipedia (citing WSJ report)

Related reading: **Is Trump a Republican? Party Affiliation and History Explained**

For readers unfamiliar with the legal and political pressure Powell has faced, Jerome Powells conflicts with Trump provides additional background on the tensions that have defined his tenure.

Frequently asked questions