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Federal Prosecutors Probe Fed Chair Powell Over Possible False Testimony on Headquarters Renovation

Powell says the grand jury subpoena reflects political pressure from President Trump that endangers the Fed’s independence.

Overview

  • Powell disclosed that the Justice Department sent a grand jury subpoena to the Federal Reserve on Jan. 9 and said in a Jan. 11 video he will remain in his post.
  • The investigation focuses on whether he misstated details in testimony to a June 2025 Senate Banking Committee hearing about the Washington headquarters project.
  • The renovation is reported at about $2.5 billion, roughly $700 million over early estimates, a cost overrun that has drawn scrutiny from the administration.
  • The probe was approved in November by D.C. U.S. Attorney Matthew Piro, according to reporting by the New York Times.
  • Trump has publicly pressed for larger rate cuts and repeatedly criticized Powell; asked about the probe on NBC, he said he knew nothing about it.