Jerome Powell DOJ Referral: What It Means for the Fed Chair
When a sitting Federal Reserve chair receives a criminal referral from Congress, the first instinct is to assume wrongdoing. But the story of Jerome Powell and the Department of Justice probe is as much about legal procedure, term limits, and the fragile line between politics and monetary policy as it is about the allegations themselves.
Referral date: July 21, 2025 ·
Referral author: Rep. Anna Paulina Luna (R-Fla.) ·
Allegation: Perjury and false statements to federal officials ·
DOJ investigation opened: November 2025 ·
Powell confirmation: Jan. 11, 2026 ·
Fed chair term ends: May 15, 2026
Quick snapshot
- Whether DOJ will issue formal charges.
- Whether the investigation will shorten Powell’s remaining term.
- Which parts of Powell’s testimony DOJ considers most significant.
- Feb. 5, 2018: Powell becomes Fed chair.
- July 21, 2025: Luna referral to DOJ.
- May 15, 2026: Powell’s chair term expires.
- Potential DOJ charges or public court filings.
- Powell’s public testimony and schedule.
- The 2026 Fed chair nomination process begins.
Six facts frame the Jerome Powell DOJ referral: the players, the dates, and the legal boundaries.
| Attribute | Value |
|---|---|
| Full name | Jerome H. Powell (Federal Reserve official bio) |
| Current role | Chair, Federal Reserve Board of Governors (Federal Reserve) |
| Referral author | Rep. Anna Paulina Luna, R-Fla. (luna.house.gov) |
| Referral date | July 21, 2025 (MPA Mag) |
| DOJ investigation | Opened November 2025; confirmed by Powell on Jan. 11, 2026 (ABC News; Wikipedia) |
| Fed chair term expiration | May 15, 2026 (Federal Reserve public term information) |
Why is Jerome Powell being investigated?
What did the criminal referral allege?
The referral is based on Powell’s sworn testimony before the Senate Banking Committee on June 25, 2025. Luna alleged that Powell made false statements about cost overruns and delays in the Federal Reserve headquarters renovation project. She sent a formal criminal referral to the DOJ on July 21, 2025, asking prosecutors to examine whether Powell committed perjury and made false statements to federal officials (MPA Mag).
A criminal referral is a formal request for review — not an indictment. It carries no legal presumption of guilt and does not compel the DOJ to act.
What is a DOJ referral?
A criminal referral is a document sent by a congressional committee or member to the Department of Justice, asking it to investigate potential federal crimes. The DOJ then decides whether to open a case, issue subpoenas, or decline. In this case, federal prosecutors in Washington, D.C., opened a criminal investigation in November 2025 — the first concrete sign that the referral was taken seriously (ABC News).
The catch: A referral is a political act as much as a legal one. It pressures the DOJ to act, but it does not dictate the outcome. The Justice Department’s independence means it can decline to prosecute even after a referral.
What happened to Jerome Powell?
What did Powell say about the investigation?
On Jan. 11, 2026, Powell publicly confirmed the existence of the DOJ investigation. In a statement reported by multiple outlets, he acknowledged that the Fed had received grand jury subpoenas related to the renovation matter. Powell said he would remain in his role as chair and that the investigation would proceed independently (Yahoo Finance / Reuters).
What is the status of the DOJ case?
As of early 2026, the DOJ probe is ongoing. Reuters reported that after the investigation was later closed, responsibility was handed to the Federal Reserve’s inspector general. A federal judge also threw out two DOJ subpoenas, weakening the probe’s reach (Yahoo Finance / Reuters). Senators like Thom Tillis lifted holds on Trump Fed nominees after the U.S. Attorney announced the inspector general would take over (The Hill).
Why this matters: The shift from a criminal probe to an internal inspector general review suggests the DOJ found insufficient grounds for charges — or that political pressure changed the calculus. Either way, Powell remains in office, and the investigation has not led to any formal charges.
Can a president remove the chair of the Federal Reserve?
Can Jerome Powell be removed by Trump?
The Federal Reserve Act allows removal of a Fed chair only for cause — serious misconduct, dereliction of duty, or criminal behavior. A president cannot remove a Fed chair solely because of policy disagreements (Congressional Research Service). This legal protection is the core of Fed independence.
What is the legal standard for removal?
To remove Powell, Trump would need to prove cause — for example, a criminal conviction or a clear violation of ethics rules. The current DOJ investigation does not meet that standard on its own; it is a probe, not a finding. Powell’s term as chair runs until May 15, 2026, and his separate term as a Board governor extends to January 31, 2028 (Federal Reserve Board).
If the DOJ ever files charges, that could be the cause needed for removal. Until then, the legal barrier to ousting Powell is steep.
Was Jerome Powell appointed by Trump?
When did Jerome Powell become Fed chair?
Trump nominated Powell as Fed chair in 2017. Powell took office on Feb. 5, 2018 (Federal Reserve Board). He was confirmed for a second term by President Biden and the Senate in May 2022.
Was Powell reappointed by President Biden?
Yes. Biden renominated Powell, and the Senate confirmed him for a second four-year term as chair. That term began in 2022 and is scheduled to end on May 15, 2026. Powell also sits on the Board of Governors, a 14-year term that began in 2012 and runs until 2028 (The Wall Street Journal).
Is Jerome Powell a Democrat or Republican?
Has Powell served in Republican administrations?
Powell is a Republican. He served as an undersecretary for finance in the U.S. Treasury during the George H.W. Bush administration. His appointment as a Fed governor in 2012 was by a Democratic president (Obama), but his chair nomination came from Trump. Fed policy decisions are designed to be independent of party politics, though the chair’s party affiliation is often noted in debates about monetary policy (Congressional Research Service).
The pattern: Powell’s Republican background is part of why his reappointment by Biden was a bipartisan gesture. It also makes the Luna referral — from a fellow Republican — a notable fracture within the party over Fed independence.
Why is Jerome Powell no longer the Fed chairman?
Is Jerome Powell resigning?
Powell has not resigned and has stated he would not leave the board until the investigation was “well and truly over.” He emphasized transparency and finality (Yahoo Finance). His chair term expired as scheduled on May 15, 2026, but he continued to serve as chair pro tempore until Kevin M. Warsh was sworn in (Federal Reserve Board).
Who will replace Jerome Powell as Fed chair?
The president nominates a new chair, subject to Senate confirmation. Kevin M. Warsh has been named as successor. The transition is underway as of May 2026 (The Hill).
Timeline of the Powell DOJ Referral
- Feb. 5, 2018: Powell takes office as Federal Reserve chair (Federal Reserve Board).
- Nov. 22, 2021: Biden announces Powell’s nomination for a second term as chair (The Wall Street Journal).
- May 2022: Senate confirms Powell for a second term as Fed chair (Congressional Research Service).
- July 21, 2025: Rep. Luna refers Powell to the DOJ for alleged perjury and false statements (MPA Mag).
- November 2025: Federal prosecutors in Washington, D.C., open a criminal investigation (ABC News).
- Jan. 11, 2026: Powell confirms the investigation in a public statement (Yahoo Finance / Reuters).
- May 15, 2026: Powell’s current term as chair expires; he serves as chair pro tempore until successor sworn in (Federal Reserve Board).
What we know — and what we don’t
Confirmed facts
- Rep. Anna Paulina Luna referred Powell to the DOJ on July 21, 2025 (MPA Mag).
- Federal prosecutors opened a criminal investigation in November 2025 (ABC News).
- Powell confirmed the investigation on Jan. 11, 2026 (Wikipedia).
- Powell’s chair term ended May 15, 2026 (Federal Reserve Board).
What’s unclear
- Whether DOJ will issue formal charges.
- Whether the investigation will shorten Powell’s remaining board term.
- Which specific statements DOJ considers most problematic.
- Whether the referral was timed to influence the 2026 Fed chair succession.
Key perspectives
“Lawmaker refers Fed chair Powell for DOJ probe over alleged false statements.”
— Rep. Anna Paulina Luna, via MPA Mag
“Powell stated that he would not leave the board until the investigation was ‘well and truly over’ and emphasized transparency and finality.”
— Jerome Powell, as reported by Yahoo Finance
For the Federal Reserve’s next chair, the lesson is clear: even the appearance of a conflict can trigger a referral, and the political clock may run faster than the legal one. The new chair will inherit both the institution’s independence and the ongoing scrutiny from Congress — and must navigate the same narrow line between policy and politics that defined Powell’s final years.
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Frequently asked questions
Is a DOJ referral the same as an indictment?
No. A criminal referral is a request from Congress to the DOJ to investigate. An indictment is a formal charge issued by a grand jury. A referral does not imply guilt.
What happens after a criminal referral is sent to the DOJ?
The DOJ reviews the referral and decides whether to open an investigation. It can issue subpoenas, convene a grand jury, or decline to act. The process is confidential until charges are filed or the investigation is closed.
What does a criminal referral mean for the Federal Reserve?
It creates uncertainty but does not directly affect Fed operations. Powell remained chair during the investigation. The Fed’s monetary policy decisions continue independently.
Does the attorney general decide whether to pursue a referral?
Yes. The attorney general and federal prosecutors in the relevant district (Washington, D.C., in this case) decide whether to move forward. The referral is not binding.
How long is the Federal Reserve chair’s term?
The chair’s term is four years, renewable. Powell’s first term ran 2018–2022, and his second term runs from 2022 to May 15, 2026. His board governor term is 14 years, ending January 31, 2028.
Has a Fed chair ever been removed from office?
No Federal Reserve chair has ever been removed from office. The Federal Reserve Act requires “cause” for removal, and no president has successfully tested that standard against a sitting chair.
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