Justice Department opens criminal inquiry into Fed Chair Jerome Powell over renovations

The Justice Department has opened a criminal investigation into Jerome H. Powell, the chair of the Federal Reserve, over public statements about a $2.5 billion renovation of the Fed’s headquarters in Washington. For the first time in history, a Fed chair is the subject of a criminal probe, the report said.

Officials said the inquiry was approved in November by Jeanine Pirro, the U.S. attorney for the District of Columbia. Prosecutors served grand jury subpoenas on Friday and are examining whether Mr. Powell misled Congress when he was questioned in June, along with spending records and communications with his staff.

Mr. Powell responded in a rare two‑minute video accusing the administration of using legal threats as “pretexts” to coerce the central bank into accepting pressure for lower borrowing costs. The renovation, which the Fed says will cost about $2.5 billion and is roughly $700 million over earlier estimates, began in 2022 and is expected to finish in 2027.

The central bank has said the work addresses longstanding hazards and accessibility issues in buildings from the 1930s and cited asbestos, lead removal, soil contamination, material and labor costs, and tariffs as factors in the higher price. Some proposed amenities, including private elevators and dining rooms, were later scrapped.

Key Topics

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