Trump Administration Opens Criminal Probe into Federal Reserve Chair Jerome Powell over Headquarters Renovation Costs

The administration of President donald trump has opened a federal criminal investigation into Federal Reserve Chair jerome powell regarding cost overruns on a $2.5 billion renovation project. This effort involves two historical buildings at the Federal Reserve's headquarters complex. jerome powell disclosed the probe on Sunday and has denied all wrongdoing. He stated that the investigation is a pretext to pressure him over demands from donald trump for sharply lower interest rates. This investigation represents an unprecedented challenge to the central bank's independence in the United States US.

kevin hassett, the director of the White House National Economic Council and a candidate to replace jerome powell, said he wished there had been more transparency from the Federal Reserve about the cost overruns. kevin hassett stated that the renovation costs were related to factors such as asbestos. Although the term of jerome powell as chair ends in May 2026, donald trump has not yet announced a replacement for the position, which has created a period of institutional uncertainty within the United States US.