The U.S. Attorney’s Office for the District of Columbia has initiated a criminal investigation into Jerome Powell, the Chairman of the Federal Reserve. This inquiry centers around the renovation of the Fed’s headquarters and whether Powell’s statements to Congress about the project were accurate.
Sources informed The New York Times that the investigation aims to determine if Powell provided truthful information regarding the project’s scope and financial implications during congressional hearings.
The Federal Reserve has not yet responded to requests for comment from other media outlets.
The renovations, estimated to cost about $2.5 billion, are being financed entirely by the Fed, without any taxpayer funding involved.
Interestingly, the Fed operates independently of Congress for funding its expenses, which include employee wages and facility upkeep. Its primary revenue comes from the interest on government bonds and fees from financial institutions.
During a Senate Banking Committee meeting in June 2025, Powell stated, “There’s no new marble. There’s no special elevator. It’s the same old elevator.” He continued to emphasize that major upgrades were not part of the renovations, mentioning the lack of new plumbing or any rooftop garden.
Powell reflected on his time before becoming Chairman, expressing concern over the urgent need for renovations at the Eccles Building, describing it as “not really safe” and not waterproof. He admitted that it was a bit daunting to take on such a project during his tenure.
Former President Donald Trump had previously hinted at potential legal action concerning the renovations.
The renovations are expected to be finalized by Fall 2027, with staff anticipated to start working in the updated building in March 2028.
