Federal Reserve Chair Jerome Powell faces criminal investigation over testimony regarding Fed headquarters renovation as President Donald Trump seeks replacement.

Federal Reserve Chair Jerome Powell says the Justice Department is investigating him over his testimony before the Senate Banking Committee regarding renovations at the Fed's D.C. headquarters. CBS News' Natalie Brand reports.

Federal Reserve Chair Jerome Powell says the Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his testimony this summer about the Fed’

U.S. futures sank Monday after Federal Reserve Chair Jerome Powell said the Department of Justice had served the central bank with subpoenas. Markets in Europe were mostly lower after a broad rally in Asia.

Federal prosecutors have opened a criminal investigation of Federal Reserve Chair Jerome Powell over his testimony about the central bank’s $2.5 billion renovation of its headquarters in DC. Powell called the threat of criminal charges a result of the Federal Reserve not setting interest rate “following the preferences of the president.

U.S. ​Federal Reserve ‌Chair Jerome Powell ​said on Sunday the ‍Trump administration has ​threatened him ​with ⁠a criminal indictment over Congressional testimony he gave last summer, sending subpoenas to ‌the Fed on Friday in ​what ‌he called ‍a "pretext" aimed ⁠at furthering pressure on him in a dispute with President Donald Trump over interest rates.

Powell said the investigation rests on “pretexts,” arguing it's retaliation for the Fed’s refusal to follow the Trump's preferences on interest rates.

In a video statement, Fed Chair Jerome Powell said the investigation over his testimony about the central bank’s building renovation project is part of President Trump’s ongoing campaign to pressure the Fed to lower interest rates.