The CEOs of JPMorgan Chase and the Bank of New York Mellon Corporation are standing by Federal Reserve Chairman Jerome Powell after the Department of Justice opened a criminal investigation into the central banker.
Powell announced on Sunday that the DOJ was investigating him following allegations that he lied in a Senate testimony regarding renovations to the Fed buildings. He denounced the “unprecedented action” as something that “should be seen in the broader context of the administration’s threats and ongoing pressure.”
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JPMorgan Chase CEO Jamie Dimon came to Powell’s defense in a press call on Tuesday.
“While I don’t agree with everything that the Fed has done, I do have enormous respect for Jay Powell,” Dimon said.
Dimon reiterated his support, in light of the investigation, for Fed independence and said, “Anything that chips away at that is probably not a good idea.”
“In my view, it will have the reverse consequences,” Dimon said. “It’ll increase inflation expectations and probably increase rates over time.”
Powell said the DOJ subpoenas center on his June 2025 testimony before the Senate Banking Committee. Republicans in Washington, such as Sen. Tim Scott (R-SC) and Rep. Anna Paulina Luna (R-FL), as well as Office of Management and Budget Director Russ Vought, brought attention to the testimony in 2025, saying Powell’s statements on the Fed building renovations contradicted planning documents.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” Powell said in a video statement. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”
Powell’s control of the Fed has clashed with the goals of President Donald Trump, who has pushed Powell to lower interest rates throughout 2025.
BNY CEO Robin Vince also cautioned against the DOJ investigation on Tuesday, saying it could be a distraction from Trump’s goals of lowering prices.
“If you look at the things that underpin the U.S. bond market, that [Federal Reserve] independence is one of those things,” Vince said, according to Yahoo Finance. “Sort of questioning one of the tenets that underlies the bond market runs the risk of actually doing the opposite of that — and actually pushing up interest rates.”
White House National Economic Council Director Kevin Hassett defended the investigation into Powell on Monday.
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“I guess the question is, if you think the building cost $20 billion, or $10 billion, do you think at some point that it’s appropriate for the federal government to investigate?” Hassett said. “And it seems like the Justice Department has decided that they want to see what’s going on over there with this building that’s, you know, massively more expensive than any building in the history of Washington.”
Hassett told reporters, “If I were Fed chair, I would want them to do that. I think that it’s really important to understand where the taxpayer money goes, and understand why it goes this way or that.”