Federal Reserve Chair Jerome Powell is under federal criminal investigation related to the $2.5 billion renovation of the central bank’s headquarters and his congressional testimony about that, Powell said. Powell said the probe was the result of the Fed “setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of” President Donald Trump. Sen. Thom Tillis, a North Carolina Republican, and Banking Committee member, said he would oppose any nominee by Trump to replace Powell, and any Fed board nominee, “until this legal matter is fully resolved.” US Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC, on December 10, 2025. A divided US Federal Reserve lowered interest rates Wednesday for a third consecutive time this year, flagging labor market concerns even as inflation remained elevated while President Donald Trump's tariffs bite. The cut by a quarter percentage point brings rates to a range between 3.50 percent and 3.75 percent, the lowest in around.