Jerome Powell Investigated Over Fed HQ Renovation Costs
Henry ThompsonFed Chair Powell investigated on HQ costs, intensifying Trump pressure and succession speculation.
Federal Reserve Chair Jerome Powell is the subject of an investigation by U.S. prosecutors regarding the renovation of the central bank's Washington headquarters, according to a report from The New York Times.
Citing officials briefed on the matter, the report states that the U.S. attorney's office in the District of Columbia has opened the probe.
Probe Focuses on Congressional Testimony
The investigation centers on whether Powell misled Congress about the full scope and cost of the renovation project. To determine this, prosecutors are reportedly analyzing Powell's public statements alongside the Federal Reserve's spending records.
Trump Administration Pressure Mounts
This legal inquiry is widely viewed as a new form of pressure on Powell from the Donald Trump administration. The president has repeatedly attacked the Fed Chair for resisting demands for sharp interest rate cuts.
Previously, Trump had also raised the possibility of fraud connected to the Fed's headquarters renovation, an allegation that Powell denied.
The conflict over monetary policy saw the Fed cut interest rates by a cumulative 75 basis points in 2025, a significantly smaller reduction than Trump had called for. At the time, Powell cited caution over inflation and the economic impact of the administration's policies as reasons for the more measured cuts.
Succession Speculation Intensifies
With Powell's term expiring in May, the Trump administration is expected to move quickly to announce his replacement. Last week, Trump told The New York Times he had already selected the next Fed Chair and would announce his decision soon.
The frontrunners for the position are believed to be White House economic advisor Kevin Hassett and former Fed governor Kevin Warsh. Both candidates are seen as supportive of President Trump's calls for lower interest rates.
