Overview
- Two December emails from AUSA Carlton Davis seeking a call about the headquarters renovation struck Fed officials as breezy, prompting Jerome Powell to hire outside counsel and avoid informal talks.
- Justice Department figures say the outreach occurred before any criminal case had opened, with the inquiry starting in November as fact‑gathering and no FBI involvement at that stage.
- Prosecutors set an early‑January response deadline and, after no reply by Jan. 8, served grand jury subpoenas the next day seeking records or live testimony later this month.
- Powell disclosed the subpoenas in a video statement, saying they threatened indictment, while U.S. Attorney Jeanine Pirro countered that the term came from Powell and described the approach as benign.
- The investigation focuses on the Fed’s headquarters renovation rising to about $2.5 billion from roughly $1.9 billion and on issues tied to Powell’s June testimony.