The Wall Street Journal, which first reported the news, said this was a sign that Mueller's inquiry was growing in intensity and entering a new phase. A CNN report said that the investigation has now widened to focus on possible financial crimes.
Mueller, a former FBI director, was appointed in May - after James Comey was abruptly fired as the chief of the investigating agency - to probe the alleged Russian meddling in the 2016 presidential election.
The Russian meddling allegations have weighed in on the Trump administration, putting the US president in a difficult position hindering his efforts to improve ties with Moscow.
The development came as Trump signed a law authorising new sanctions on Russia on Wednesday. A week before that, the US Congress had overwhelmingly voted in support of the legislation, curtailing room for Trump to modify or lift the sanctions without congressional approval.
Ty Cobb, special counsel to Trump, said he was not aware that Mueller had started using a new grand jury. "Grand jury matters are typically secret," he said.
Cobb added that Comey had said three times Trump wass not under investigation and "we have no reason to believe that has changed."
Congressman Jimmy Gomez said the reports of Mueller impanelling a grand jury demonstrates that there are serious questions about foreign adversaries trying to gain influence through the financial interests of the US president, his family members, and other associates.
"Congress must uphold its duty to defend the Constitution and investigate President Trump's financial dealings," he said.
Democratic National Committee CEO Jess O'Connell said the grand jury was a further confirmation that this was not a "witch hunt".
Meanwhile, a bipartisan group of Senators yesterday introduced legislation that would create a judicial check on the executive branch's ability to remove a special counsel.
The Special Counsel Independence Protection Act (SCIPA) ensures that any action by the Attorney General or Acting Attorney General to remove a special counsel from office must first be reviewed by a panel of federal judges.
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