Criticism mounts over criminal inquiry into Fed chair Jerome Powell

The U.S. attorney in Washington has opened a criminal inquiry into Federal Reserve chair Jerome H. Powell over a $2.5 billion renovation of the Fed’s headquarters and whether he lied to Congress, drawing swift criticism from Republicans, international policymakers, Wall Street and some Trump allies.

Jeanine Pirro informed Mr. Powell her office was initiating the inquiry and later served grand jury subpoenas after assigning a team last November, officials said. Ms. Pirro told critics on social media that "This office makes decisions based on the merits, nothing more and nothing less" and said the Fed had ignored two politely worded requests for information.

The move prompted concern inside the Justice Department because Ms. Pirro did not consult senior headquarters officials, and it drew pushback from senators including Thom Tillis and John Thune. A dozen central bankers, including Christine Lagarde and Andrew Bailey, said in a statement that "We stand in full solidarity with the Federal Reserve System and its Chair Jerome H.

Powell," and Wall Street figures such as JPMorgan Chase’s Jamie Dimon warned that actions that chip away at Fed independence could have adverse consequences. The inquiry has already produced subpoenas and exposed divisions within the administration; Treasury official Scott Bessent, who is leading the process to find Mr.

Key Topics

Politics, Jerome Powell, Jeanine Pirro, Federal Reserve, Justice Department, Fed Renovation