Federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell, marking a dramatic escalation in the Trump administration’s growing confrontation with the central bank’s independence.

Powell confirmed the investigation in a statement Sunday night, saying it stems from his earlier testimony to Congress regarding the multi-year renovation of Federal Reserve buildings. However, he suggested the probe is part of a broader political effort to pressure the Fed to cut interest rates.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether monetary policy will be directed by political pressure or intimidation,” Powell said in a video message released by the Federal Reserve.

A spokesperson for Attorney General Pam Bondi said the Justice Department has directed U.S. attorneys to prioritize investigations into any potential misuse of taxpayer funds. Meanwhile, a spokesperson for the U.S. Attorney’s Office in Washington declined to comment on the ongoing investigation.

President Donald Trump denied any involvement in the decision to investigate Powell. Speaking in a brief interview Sunday night, Trump said he was unaware of the probe but criticized Powell’s performance.

“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. He added that interest rates remain too high and claimed public pressure — not political interference — was driving criticism of Powell. “He’s hurt a lot of people,” Trump said. “I think the public is pressuring him.”

The investigation adds a new layer of tension to the already strained relationship between the White House and the Federal Reserve, raising fresh concerns about political interference in monetary policy.