US federal prosecutors have opened a criminal investigation into the $2.5 billion Fed headquarters renovation project in Washington, D.C.
The federal prosecutor's office in the Special Administrative Region of Columbia has opened a criminal investigation into US Federal Reserve Chairman Jerome Powell for renovating the headquarters of the central bank in Washington and whether Mr. Powell lied to Congress about the scale of the project, US officials revealed.
The investigation, including analyzing Mr. Powell's public statements and checking spending data, was approved by the head of the Federal Prosecutor's Office in the Special Region of Columbia, Jeanine Pirro, in November 2025.
The investigation escalated the prolonged dispute between President Donald Trump and Fed Chairman Jerome Powell. The President threatened to dismiss the Fed Chairman and raised the possibility of suing Mr. Powell in connection with the 2.5 billion USD bailout.
In an interview last week, President Trump said he had decided who would replace Mr. Powell as Fed chairman and is expected to announce his decision soon. Mr. Kevin A. Hassett, President Trump's top economic advisor, is a bright candidate for this position.
Mr. Powell's Fed chairmanship ended in May, but his governorship lasts until January 2028. Mr. Powell has not yet revealed whether he plans to continue working at the central bank after this year.
In a video message released by the Fed on January 11, Mr. Powell described the investigation as "unprecedented" and questioned the motive for this move.
The US Congress grants the Fed the right to set interest rates without being interfered with by presidents. US lawmakers stipulate that central banks should pursue low, stable inflation and a healthy labor market.
Mr. Powell also informed on January 11 that the US Department of Justice had sent a summons of the jury to the US Federal Reserve. According to an unnamed official, prosecutors from the Federal Public Prosecutor's Office in the Special Administrative Region of Columbia have contacted Mr. Powell's staff many times to request documents on the rehabilitation project.
The Fed headquarters renovation project started in 2022 and is expected to be completed in 2027. Estimated cost exceeding the budget is about 700 million USD. The project includes the expansion and modernization of the Marriner S. Eccles Building and another building on Constitution Avenue, dating back to the 1930s.
The US Federal Reserve said that both buildings have not been comprehensively renovated since their construction nearly 100 years ago, showing that they both need much renovation. The Fed's renovation project also includes removing asbestos and lead pollution, ensuring facilities comply with laws related to accessibility for people with disabilities.
