WASHINGTON (Diya TV) — The U.S. attorney’s office in Washington, D.C., has opened a criminal investigation into Federal Reserve Chair Jerome H. Powell over the central bank’s renovation of its headquarters. Officials said the inquiry will examine whether Powell misled Congress about the scope of the $2.5 billion project. The investigation, approved in November by U.S. Attorney Jeanine Pirro, a Trump ally, also reviews Powell’s public statements and Fed spending records. The inquiry marks a dramatic escalation in former President Donald Trump’s long-running campaign against Powell. Trump has repeatedly criticized Powell for resisting his demands to cut interest rates and has threatened to remove him from office.
In a rare video message, Powell acknowledged the Justice Department had served the Fed with grand jury subpoenas. He called the investigation “unprecedented” and questioned its timing. Powell emphasized that he performed his duties “without political fear or favor” and warned the probe could threaten the Fed’s independence.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said. He added that the inquiry raises concerns about whether monetary policy could be influenced by political pressure. Trump told NBC News he had no knowledge of the investigation but criticized Powell’s performance. “He’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said. He claimed the subpoenas had nothing to do with interest rates.
Lawmakers from both parties questioned the investigation. Republican Sen. Thom Tillis of North Carolina, a member of the Senate Banking Committee, said reports of subpoenas underscore attempts to end the Fed’s independence. “If there were any remaining doubt whether advisers within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” Tillis said.
Democratic Sen. Elizabeth Warren of Massachusetts accused Trump of trying to replace Powell with a “sock puppet” to control the central bank. The Fed’s independence has long been protected by Congress to ensure interest rates are set based on economic conditions, not political preferences. Powell’s term as Fed chair ends in May, but he remains a governor of the central bank until January 2028. Trump has indicated he will soon announce a replacement. Kevin A. Hassett, a former Trump economic adviser, is a possible candidate. Powell has not confirmed whether he will seek to remain at the Fed.
The investigation focuses on renovations at the Fed’s Marriner S. Eccles Building and an adjacent building on Constitution Avenue. Construction began in 2022 and is expected to finish in 2027. The project is now roughly $700 million over budget. The Fed said the buildings, nearly 100 years old, had not been fully renovated since construction. Renovations include removing asbestos, addressing lead contamination, and ensuring accessibility for people with disabilities. The project also modernizes offices and staff areas.
A 2021 Fed proposal listed private elevators, dining rooms for top officials, marble features, and a rooftop terrace. During a June congressional hearing, Powell denied that many of these features were part of the latest plans. “There’s no V.I.P. dining room; there’s no new marble,” he said. He added that some initial plans were scrapped. The Fed later published a “Frequently Asked Questions” post reaffirming Powell’s testimony. The central bank explained cost overruns as the result of higher labor and materials expenses, asbestos removal, and soil contamination.
Legal experts note that opening an investigation does not guarantee an indictment. Previous attempts to prosecute Trump targets, including former FBI Director James Comey and New York Attorney General Letitia James, were dismissed by federal judges. The inquiry highlights tensions between the Trump administration and the Fed. Trump previously sought to remove Fed Governor Lisa D. Cook over mortgage fraud allegations. The Supreme Court is set to hear arguments in her case on Jan. 21.
The Justice Department has not commented on the investigation. A spokesperson said Attorney General Pam Bondi instructed U.S. attorneys to prioritize probing abuses of taxpayer funds. Powell’s message to the public emphasized the stakes: the investigation could set a precedent that threatens the central bank’s ability to make decisions free of political interference.
