Federal investigators have opened a criminal investigation into Fed Chairman Jerome Powell.
Powell is under fire for the cost of renovating the Fed’s DC headquarters. The cost ballooned from $1.9 billion to $2.5 billion.
“Powell has asked the central bank’s inspector general to conduct an additional review of the ongoing renovation, CNN previously reported. Last month, some Senate lawmakers grilled Powell over what they depicted as lavish upgrades to its DC headquarters at Powell’s semiannual monetary policy hearing,’ CNN previously reported.
“The Fed’s renovation project was approved by its board in 2017 and originally cost $1.9 billion in 2019. Construction began in 2021, but the cost swelled to $2.5 billion because of “unforeseen conditions” requiring more spending to rectify, such as “more asbestos than anticipated, toxic contamination in soil, and a higher-than-expected water table,” according to the Fed’s website,” CNN reported.
Last July, Jerome Powell was criminally referred to the Justice Department for prosecution.
GOP Congresswoman Anna Paulina Luna sent a letter to the DOJ accusing Powell of perjury.
“On June 25, 2025, Chairman Powell provided testimony under oath before the U.S. Senate Committee on Banking, Housing, and Urban Affairs regarding the renovation of the Federal Reserve’s Eccles Building. In his statements, he made several materially false claims,” Luna’s letter said, according to Fox News.
Rep. Luna said Powell was lying about the cost of the renovations.
“Separately, in a letter to the Office of Management and Budget (OMB) Director Russell Vought, Chairman Powell characterized the changes that escalated the cost of the project from $1.9 billion to $2.5 billion as minor. However, documents reviewed by congressional investigators indicate that the scope and cost overruns of this project were neither minor in nature nor in substance,” Luna wrote.
On Sunday, The New York Times reported that Powell is under federal criminal investigation. US Attorney for DC Jeanine Pirro opened the investigation in November.
Powell panicked and released a video response.
Jerome Powell said the Federal Reserve released grand jury subpoenas from the DOJ Friday that threatened a criminal indictment.
WATCH:
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