GOP senator suggests Fed chair Powell resign now to dodge potential criminal indictment

Sen. Kevin Cramer, R-N.D., suggested Tuesday that Federal Reserve Chair Jerome Powell should resign to avoid a potential indictment, arguing the move could prompt the Department of Justice (DOJ) to drop its investigation.

The suggestion comes after the DOJ announced Sunday it has opened a criminal probe into Powell focused on the renovation of the central bank’s Washington headquarters and whether he was truthful in his congressional testimony regarding the project.

‘If you’re the attorney for Jay Powell and you want to avoid an indictment, how about you go to Jeanine Pirro and say, ‘I’ll make a deal. I’ll step down today if you’ll drop the investigation today,” Cramer said on FOX Business’ ‘Kudlow.’

Cramer added that his proposed legal strategy would be ‘a win-win for everybody.’

U.S. Attorney for the District of Columbia Jeanine Pirro said on X Monday that her office had contacted the Fed ‘on multiple occasions to discuss cost overruns and the chairman’s congressional testimony, but were ignored, necessitating the use of legal process — which is not a threat.’

‘The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s,’ Pirro continued. ‘None of this would have happened if they had just responded to our outreach. This office makes decisions based on the merits, nothing more and nothing less. We agree with the chairman of the Federal Reserve that no one is above the law, and that is why we expect his full cooperation.’

Powell provided testimony before the Senate Banking Committee last year regarding a significant renovation to two main office buildings in the Fed’s headquarters in Washington, D.C. The project is expected to cost $2.5 billion and is being paid for by the central bank, not taxpayers.

Powell confirmed in a video statement Sunday that the Federal Reserve had been served ‘with grand jury subpoenas’ that threatened ‘a criminal indictment.’

While Powell said he respected the rule of law and congressional oversight, he asserted that the Justice Department’s move was ‘unprecedented’ and politically motivated.

‘This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,’ he said. He added that 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.’

A spokesperson for the Fed told Fox News Digital the Fed would not have any comment beyond Powell’s video message from Sunday.

Cramer cautioned on ‘Kudlow’ that an indictment could negatively impact the economy.

‘I don’t want to do anything to disrupt this incredible rocket ship economy we’re enjoying right now,’ he said. ‘We’ve got other big things to do that I’d rather focus on than an indictment.’

The U.S. Attorney’s Office for the District of Columbia did not immediately respond to Fox News Digital’s request for comment.

Fox News Digital’s Amanda Macias contributed to this report.