Overview
- The New York Times reported that federal prosecutors have opened an investigation involving Jerome Powell, and authorities have not confirmed the report.
- The article does not identify the focus of the inquiry, the responsible U.S. attorney’s office, or whether the work is preliminary or tied to a grand jury.
- The development follows controversy over the costly renovation of the Federal Reserve’s Washington headquarters, which Powell asked the inspector general to review in mid-2025.
- A Republican lawmaker in July 2025 urged the Justice Department to examine potential false statements related to renovation features, intensifying political scrutiny.
- Reporting notes that any confirmed prosecutorial action could disrupt Fed communications, unsettle markets, and complicate the leadership transition as Powell’s chair term ends in May 2026.