Overview
- U.S. Attorney Jeanine Pirro said her office sought information on the Federal Reserve’s $2.5 billion headquarters renovation and Powell’s June Senate testimony but was ignored, prompting grand jury subpoenas.
- Powell released a rare video asserting the probe threatens the Fed’s ability to set rates free of political pressure, drawing public support from former Fed chairs and international central bankers.
- Reports identified FHFA Director Bill Pulte as a driving force behind scrutiny of Powell, though he denies involvement, as some administration allies and market voices signal a desire to de‑escalate.
- Republican pushback intensified, with Sen. Thom Tillis vowing to withhold support for future Fed nominees and leaders warning the clash could complicate confirmations.
- A previously disclosed July letter from Powell to senators detailed the roughly $700 million cost overrun and site hazards, undercutting claims that he misled Congress about the renovation.