According to a key Republican lawmaker, Federal Reserve Chair Jerome Powell may miss his next scheduled congressional hearing because the Department of Justice has served a subpoena to the central bank.

This development comes after Powell stated on Sunday that the Fed had received a grand jury subpoena from the Department of Justice, facing the threat of criminal prosecution. This action is related to his congressional testimony last June concerning the ongoing renovation project at the Federal Reserve headquarters.

Under a 1978 amendment to the laws governing the central bank, the Fed Chair is required to testify before Congress twice a year on monetary policy and economic developments. Traditionally, they appear for hearings held by the Senate Banking Committee and the House Financial Services Committee.

House Financial Services Committee Chairman, Republican Representative French Hill, stated, "I expect Chair Powell will not testify before the Senate and House in February due to the grand jury charging him with perjury. This will prevent him from attending the legally mandated semi-annual congressional hearings."

A Fed spokesperson declined to comment.

A group of key Republican lawmakers have already expressed concern about the Department of Justice's investigation targeting the Federal Reserve.

A key Republican on the Banking Committee, Senator Thom Tillis, who is not seeking re-election, vowed on Sunday night to oppose any Fed nominees put forward by Trump until the issue is resolved. Other Republican senators, including former Bridgewater CEO Dave McCormick, expressed more moderate opposition on Monday.