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D.C. U.S. Attorney Opens Criminal Probe Into Fed Chair Jerome Powell Over Headquarters Renovation

A grand jury is reviewing records from the Fed’s headquarters project to weigh possible charges over alleged false statements to Congress.

Overview

  • The Federal Reserve has been ordered to provide documents to a grand jury that will decide whether to hand up an indictment.
  • Prosecutors are examining Powell’s congressional testimony and the project’s spending records, according to reports citing officials familiar with the inquiry.
  • Powell called the action unprecedented and argued the renovation dispute is a pretext tied to pressure from President Trump on interest-rate policy.
  • The New York Times reported that D.C. U.S. Attorney Jeanine Pirro approved opening the probe in November.
  • The renovation began in 2022, is slated to finish in 2027, and is estimated to run about $700 million over an initial $2.5 billion budget, which the Fed attributes to higher material, labor and equipment costs and unexpected asbestos removal.