D.C. prosecutors have opened criminal inquiry into Fed chair Jerome Powell

The U.S. attorney’s office in the District of Columbia has opened a criminal investigation into Federal Reserve chair Jerome H. Powell over the central bank’s Washington headquarters renovation and whether he lied to Congress about the project, according to officials briefed on the situation.

Officials said the inquiry, approved in November by Jeanine Pirro, analyzes Mr. Powell’s public statements and spending records; Mr. Powell said the Justice Department had served the Fed with grand jury subpoenas. Prosecutors in Ms. Pirro’s office have contacted Mr. Powell’s staff multiple times to request documents about the renovation, according to an official who discussed the open inquiry on the condition of anonymity.

A spokesman for Attorney General Pam Bondi did not comment but said Ms. Bondi had “instructed her U.S. attorneys to prioritize investigating any abuses of taxpayer dollars.” The investigation escalates a broader clash between President Trump and Mr. Powell, whom the president has repeatedly criticized for resisting demands to cut interest rates and has threatened to remove.

Mr. Trump told The New York Times he has decided who he wants to replace Mr. Powell and is expected to announce his decision soon; Kevin A. Hassett is described as a front-runner. In a video message released by the Fed, Mr. Powell called the inquiry “unprecedented,” questioned its motivation and warned it posed a threat to the Fed’s independence.

Key Topics

Politics, Jerome Powell, Federal Reserve, Jeanine Pirro, Donald Trump, Pam Bondi