Federal prosecutors have launched a criminal probe into Fed Chair Jerome Powell

Federal Reserve Chair Jerome Powell is under investigation over the central bank’s $2.5 billion renovation of its Washington headquarters.

Reports say prosecutors are looking into Powell’s testimony to Congress about the renovation.

In a rare public statement, Powell said the Justice Department sent grand jury subpoenas to the Fed on Friday, which could lead to criminal charges.

Powell strongly denied any wrongdoing. He said the Fed kept Congress informed about the project. He also said the probe is an attempt to pressure the central bank into cutting interest rates.

The investigation raises political tensions, as President Donald Trump has repeatedly criticized Powell over interest rate decisions. 

Powell’s term as Fed Chair ends in May, and a decision on his successor is expected soon.