In a striking development, Federal Reserve Chair Jerome Powell revealed on Sunday that the Department of Justice has issued subpoenas to the central bank and has threatened potential criminal charges against him. This action is linked to Powell’s previous testimony concerning the Fed’s extensive building renovations.

The subpoenas mark a significant intensification in President Donald Trump’s ongoing conflict with the Federal Reserve, an institution known for its independence. Trump has frequently criticized the Fed for not reducing its key interest rate at the pace he desires. The focus of the legal scrutiny is Powell’s testimony before the Senate Banking Committee in June, which centered on the Fed’s $2.5 billion renovation project for two of its office buildings—a venture that Trump denounced as overly extravagant earlier this year.

In a video statement, Powell expressed concerns that the threat of criminal prosecution is merely a tactic to erode the Fed’s autonomy in determining interest rates. He emphasized that the core issue at stake is whether the Federal Reserve will retain the ability to set monetary policy based on objective evidence and economic conditions, rather than succumbing to political pressure or intimidation.

“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,” Powell stated, underscoring the potential implications of the Justice Department’s actions.

While the Justice Department refrained from commenting on specific cases, a statement released on Sunday indicated that Attorney General Pam Bondi has directed US Attorneys to make investigating any misuse of taxpayer funds a priority.

A spokesperson for U.S. Attorney Jeanine Pirro’s office didn’t immediately respond Sunday to a text message and phone call seeking comment.

The potential indictment has already drawn concern from one Republican senator, who said he’ll oppose any future nominee to the central bank, including any replacement for Powell, until “this legal matter is fully resolved.”

“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” said North Carolina Sen. Thom Tillis, who sits on the Banking Committee, which oversees Fed nominations. “It is now the independence and credibility of the Department of Justice that are in question.”