The president's campaign to influence the country's central bank just took a dramatic turn.

From Marketplace, I'm Sabri Beneshore, in for David Brancaccio.

The Federal Reserve says it's being investigated by the Justice Department.

Officially, it's about a renovation of some Fed office buildings.

But in an unusual Sunday video statement, Fed Chair Jerome Powell said the Trump administration is motivated by something else.

Marketplaces Nancy Marshall Gensar joins us with the latest. Hi, Nancy.

Good morning.

So President Trump has been very critical of Chair Powell. He's threatened to fire him, now to sue him. What is behind this investigation?

Well, according to Powell, the Justice Department served the central bank with grand jury subpoenas on Friday.

Powell says the GOJ is threatening a criminal indictment over his Senate testimony last year about those renovations, but Powell says that's a pretext.

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. This is about whether the Fed will be able to continue to set interest rates based

on evidence and economic conditions or whether instead monetary policy will be directed by political

pressure or intimidation. Now, President Trump talked with NBC about this last night. What do you have to say?

Well, the president told NBC he doesn't know anything about

the investigation. Trump said the only pressure on Powell is that, quote, rates are far too high.

Congress has oversight of the Fed and would have to confirm any Fed nominees. Does Congress have

anything to say about all this? Yeah, senators on both sides of the aisle are upset about this.

North Carolina Republican Tom Tillis said on X that he'll oppose the confirmation of any nominee

for the Fed until, quote, this legal matter is fully resolved.

Massachusetts Democrat Elizabeth Warren posted on X that Trump is abusing the law, and quote, the Senate must not move any Trump-fed nominee.

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