GOP Senator Urges Powell To Resign After DOJ Opens Criminal Probe; Fed Served Grand Jury Subpoenas

Sen. Kevin Cramer (R-N.D.) on Tuesday recommended that Federal Reserve Chair Jerome Powell consider resigning to try to avert a potential criminal indictment after the Justice Department opened a probe into renovations at the Fed’s Washington headquarters.

What Cramer Said

Speaking on FOX Business’ Kudlow, Cramer suggested a deal in which Powell would step down in exchange for the DOJ ending its investigation. “If you're the attorney for Jay Powell and you want to avoid an indictment, how about you go to Jeanine Pirro and say, 'I'll make a deal. I'll step down today if you'll drop the investigation today,'” he said, calling such a resolution “a win-win for everybody.”

DOJ Investigation And Subpoenas

The Department of Justice announced it has opened a criminal investigation into Powell focused on the renovation of two principal office buildings at the Federal Reserve’s Washington headquarters and whether Powell was truthful in his congressional testimony about the project. Powell confirmed in a video statement that the Fed had been served with grand jury subpoenas, raising the prospect of an indictment.

Federal Reserve Chair Jerome Powell arrives at the U.S. Federal Reserve in Washington Jan. 13, 2026.

U.S. Attorney for the District of Columbia Jeanine Pirro said on X that her office had contacted the Fed "on multiple occasions to discuss cost overruns and the chairman’s congressional testimony, but were ignored, necessitating the use of legal process — which is not a threat." She added that decisions would be made "based on the merits, nothing more and nothing less."

Powell's Response

Powell said he respected the rule of law and congressional oversight but described the Justice Department’s action as "unprecedented" and politically motivated. He maintained the probe was not about his testimony last June or the renovation itself, but, he said, stemmed from disagreement over the Fed's policy decisions: "This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings... It is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public."

Project And Practical Concerns

The renovation covers two main office buildings at the Fed’s Washington, D.C., headquarters and is projected to cost approximately $2.5 billion. The cost is being borne by the Federal Reserve rather than directly by taxpayers. Cramer warned an indictment could unsettle markets and harm the economy, saying he preferred to avoid anything that could disrupt what he described as an "incredible rocket ship economy."

Next Steps

The Federal Reserve declined to comment beyond Powell’s video statement. The U.S. Attorney’s Office for the District of Columbia did not immediately respond to requests for further comment. The investigation is ongoing, and any future developments — including potential charges, legal negotiations, or changes in Fed leadership — would affect both the institution and broader economic and political conversations.

Note: This story involves ongoing legal and political developments. Statements attributed to public officials reflect their public remarks and are reported as quoted.