D.C. criminal investigation opened into Fed Chair Jerome Powell over renovations

Time reports the U.S. Attorney’s office in the District of Columbia has opened a criminal investigation into Federal Reserve Chair Jerome Powell focused on the central bank’s nearly $2.5 billion headquarters renovation. The probe was approved in November by U.S. Attorney for D.C. Jeanine Pirro, a Trump appointee and former Fox News host.

The review, according to reporting, includes inspection of spending records and Powell’s public statements and the Justice Department has served the Fed with grand jury subpoenas. Powell said in a video statement that the Fed has “made every effort to keep Congress informed about the renovation project,” and that the Administration has used the renovations as a pretext to exert political pressure on the independent central bank.

The renovation began in 2022, is expected to finish in 2027, and the Fed says cost increases—now nearly $2.5 billion—reflect higher material, labor and unforeseen contamination such as asbestos and toxic soil. The news has rattled lawmakers, investors and economists: markets moved on the report and some members of Congress said they would withhold confirmations until the matter is resolved.

Key Topics

Politics, Jerome Powell, Jeanine Pirro, Federal Reserve, Eccles Building, Headquarters Renovation