Federal Reserve Chairman Jerome Powell announced Sunday night that federal prosecutors have launched a criminal investigation into his actions.

In a video statement posted on the Fed's official X (formerly Twitter) account, Chairman Powell stated that the Justice Department delivered a grand jury subpoena to the Fed last weekend. This suggests the possibility of criminal charges related to his testimony before the Senate Banking Committee in June.

Powell said the investigation is partly focused on statements he made regarding the Fed's long-standing efforts to modernize its historic buildings.

However, he suggested that the investigation should be viewed in the context of escalating political tensions between the central bank and the White House.

"I have a deep respect for the rule of law and for accountability in a democratic society," Powell said. "No one, including the Chair of the Federal Reserve, is above the law. But this unprecedented action must be seen in the broader context of executive threats and ongoing pressure."

He suggested that this prosecutorial investigation should be viewed in the same context as President Donald Trump's repeated criticism of the Fed's interest rate decisions.

Powell also stated, "Public service sometimes requires taking a firm stand against threats."

He added that he will "continue to carry out the duties entrusted to me by the Senate with integrity and a commitment to serving the American people."

The disclosure of the investigation into the Federal Reserve led to a weakening of the dollar and a rise in gold prices on Monday. The US dollar fell about 0.36% against a basket of major currencies, while spot gold prices rose by as much as 1.9%.

Following Powell's remarks, gold prices surged to a record high, soaring to $4,600 per troy ounce. This was due to concerns that a weakened Fed independence could trigger new inflation, according to CityAM.

Silver, another safe-haven asset often used as a hedge against inflation, also saw a sharp increase.

Jan Hatzius, chief economist at Goldman Sachs, warned that the indictment confirms concerns about the erosion of the Fed's independence.

"The news of the criminal investigation into Chairman Powell recently clearly exacerbates concerns that the independence of the Fed will be threatened," he said at the 2026 Goldman Sachs Global Strategy Conference.

Videos are being posted on social media, including X, claiming that the Fed is a "scam" rather than a true central bank.

By Hong Sung-goo, Chief Reporter of NNP, USA / Special Contribution to this publication NNP info@newsandpost.com