If you saw the headlines over the weekend about the DOJ’s investigation into Federal Reserve Chair Jerome Powell, you know that Democrats would soon be crying, “political retribution!” “Trump’s trying to kill the independence of the Fed!"
White House Press Secretary Karoline Leavitt, however, told reporters on Monday that the president did not order the probe, and although he is deeply disappointed in Powell’s performance, he had nothing to do with it. Speaking outside the WH, she was asked whether Trump commanded the Justice Department to investigate Powell, and she had a one-word answer: “No.”
White House press secretary Karoline Leavitt told reporters Monday that President Trump didn't direct DOJ officials to open an investigation into Jerome Powell, but added that the president "has every right to criticize the Fed Chair." https://t.co/WaOL9PRYcX pic.twitter.com/FR7UhB0a0d
— ABC News (@ABC) January 12, 2026
She had more to say, though, explaining that although the president has been dissatisfied with Powell’s performance — specifically his allergy toward lowering rates fast enough to get the economy going — it doesn’t mean that it was his decision to investigate the massive cost overruns the Reserve has racked up. In the past, Trump has likened Powell's renovation job to "building a basement into the Potomac River."
"Look, the president has every right to criticize the Fed chair. He has a First Amendment right, just like all of you do.
"And one thing for sure, the president's made it quite clear, is Jerome Powell is bad at his job.
"As for whether or not Jerome Powell is a criminal, that's an answer the Department of Justice is going to have to find out, and it looks like they intend to find that out."
Back in July, GOP Rep. Anna Paulina Luna (FL-13) formally referred Powell to the DOJ for misleading Congress over the overruns, which she labelled “criminal.”
I have formally referred Jerome Powell to the DOJ for criminal investigation.
— Rep. Anna Paulina Luna (@RepLuna) July 21, 2025
Chairman Powell knowingly misled both Congress and executive branch officials about the true nature of a taxpayer-funded project. Lying under oath is a serious offense— especially from someone tasked… pic.twitter.com/heXcu2YTyX
Lying under oath is a serious offense— especially from someone tasked with overseeing our monetary system and public trust.
More Jerome: Federal Prosecutors Launch Criminal Investigation Into Fed Chair Jerome Powell
Trump Mocks Jerome Powell With Hilarious Criticism of the Fed and Their Bank-Busting Renovations
As our Ward Clark reported, Trump has called out the chairman for the huge, ever-growing costs of renovating Reserve buildings and has even threatened a lawsuit:
"We're thinking of bringing a suit against Powell for incompetence, because think of it, these are two – these aren't outstanding buildings, these are small buildings. It's going to end up costing more than $4 billion, $4 billion. It's the highest price of construction, again Democrats, highest price of construction per square foot in the history of the world," Trump claimed.
Leavitt also took to Fox News on Monday to reiterate that it was the DOJ in charge of the investigation, not the WH.
Well, look, as for the criminal probe, you'll have to ask the Department of Justice about that. They are in charge. I do know one thing is, for sure, Jerome Powell has proven he's not very good at his job, as to whether he's a criminal. That an answer. The Department of Justice is going to have to find, and whether or not they do, I'd defer that to them.
Karoline Leavitt: "Jerome Powell has proven he's not very good at his job. As to whether he's a criminal, that's an answer the Department of Justice is going to have to find." pic.twitter.com/jXGgjY3ugN
— The Post Millennial (@TPostMillennial) January 12, 2026
It’ll be interesting to see whether the Justice Department finds that Powell was corrupt, incompetent, or both. (There’s always the chance they will find that he was neither, and just did a tremendous job in spending $2.5 billion).
RedState will keep you updated as the investigation progresses.
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