US attorney's office opens criminal investigation into Fed chair Powell: Report | Today News

Federal prosecutors in Washington DC have opened a criminal investigation into Jerome Powell, focusing on the Federal Reserve’s long-running renovation of its headquarters and whether the Fed chair made misleading statements to Congress about the project’s scale and cost, according to a report by The New York Times, citing officials briefed on the matter.

The inquiry is being conducted by the US Attorney’s Office for the District of Columbia and involves a review of Powell’s public testimony as well as a detailed examination of internal spending records linked to the refurbishment.

Officials familiar with the investigation told NYT, the criminal investigation was authorised in November 2025 by Jeanine Pirro, who was appointed to lead the office last year and is known to be a close ally of Donald Trump.

It remains unclear whether prosecutors have convened a grand jury or issued subpoenas, though Powell’s staff have reportedly been contacted on multiple occasions to supply documents relating to the project.

US President Trump has also suggested the possibility of legal action connected to the renovation, which he has characterised as a $2.5 billion project marked by “incompetence”.

In an interview with The New York Times last week, Trump said he had already settled on a preferred successor to Powell and was preparing to announce his choice. Kevin A. Hassett, Trump’s chief economic adviser, is widely regarded as a leading contender.

Jerome Powell’s term as Fed chair expires in May 2026, though his appointment as a governor runs until January 2028. He has not publicly stated whether he intends to remain at the central bank beyond this year.

The Fed, and Justice Department has not published any official statement confirming the criminal investigation opned by US Attorney's office into Fed Chair Jerome Powell.

The case against Powell sits within a broader pattern of conflict between Trump and the central bank. Earlier efforts included a move to remove Lisa Cook, a Fed governor whom Trump sought to dismiss over allegations of mortgage fraud.

Under US law, Fed officials can be removed only “for cause”, typically interpreted as malfeasance or serious dereliction of duty. The Supreme Court is scheduled to hear arguments in Cook’s case on January 21.

Congress has historically sought to insulate the Federal Reserve from political pressure, granting it authority to set interest rates independently of the White House. Lawmakers instead charged the institution with pursuing low and stable inflation alongside a healthy labour market.

Opening an investigation does not guarantee criminal charges. Prosecutors must still assemble sufficient evidence to persuade a federal grand jury to return an indictment — and to sustain it in court.

Recent efforts against other high-profile figures targeted by Trump have faltered. Indictments against former FBI director James B. Comey and New York attorney general Letitia James were dismissed by a federal judge in November. A separate investigation involving Senator Adam B. Schiff has yet to produce enough evidence to be presented to a grand jury.

The Fed has argued that neither building had undergone a comprehensive renovation since construction, necessitating extensive modernisation. Officials have pointed to asbestos and lead removal, soil contamination, and upgrades required to meet accessibility standards for people with disabilities as major drivers of the cost increases.

A 2021 proposal for the project included features such as private elevators and dining rooms for senior policymakers, water features, new marble fittings and a rooftop terrace for staff. During a congressional hearing in June, Powell rejected claims that these elements remained part of the current plan.

“There’s no VIP dining room; there’s no new marble,” he said. “We took down the old marble, we’re putting it back up. We’ll have to use new marble where some of the old marble broke. But there’s no special elevators. There’s just old elevators that have been there.”

Powell added that the plans had “continued to evolve”, with several early features later removed.

Following his testimony, the Fed published a detailed “Frequently Asked Questions” document on its website, reaffirming Powell’s statements to lawmakers. It subsequently released additional material, including photographs, annotations to the original proposal and a virtual tour of the site.

In accounting for the ballooning costs, the central bank cited higher prices for materials, equipment and labour, alongside unexpected complications such as greater-than-anticipated asbestos and soil contamination.

This article is based on reporting by The New York Times and officials familiar with the investigation.