The U.S. federal prosecutor’s office has launched a criminal investigation into Federal Reserve Chair Jerome Powell regarding the renovation of the central bank’s headquarters in Washington, The New York Times reported overnight between Sunday and Monday.
The U.S. Attorney’s Office for the District of Columbia is examining whether Powell lied to Congress about the scope of the renovation project, the report said, and Attorney General Merrick Garland’s appointee to lead the office, U.S. Attorney for D.C. Matthew Graves, approved the investigation last November.
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President Donald Trump, US Fed. Chair Jerome Powell
(Photos: Mark Schiefelbein/AP, Brendan Smialowsk/AFPi)
Prosecutors have contacted Powell’s team to request documents, but it is not yet clear whether a grand jury has been convened or whether any subpoenas have been issued in preparation for a possible trial.
President Donald Trump has long demanded that Powell step down, amid Powell’s refusal to cut interest rates more rapidly. Trump has also publicly criticized the cost of the Federal Reserve’s Washington headquarters renovation, and the two even sparred on camera during one of their meetings.
The estimated cost of renovating the Fed’s two historic buildings in Washington has risen to $2.5 billion this year, compared with an initial estimate of $1.9 billion in 2023, according to budget documents. “Construction cost estimates for the project continued to rise, particularly in the mechanical, electrical and plumbing sectors, due to competitive pricing of bids,” the Fed’s 2025 budget statement said.
Meanwhile, Trump has said he has already chosen his nominee to replace Powell, whose term as chair expires in May 2026. He has not announced a successor, but Kevin Hassett, director of the National Economic Council, is considered the leading candidate.