Federal Reserve Chair Jerome Powell under investigation over headquarters renovation: report

• The investigation focuses on Powell's June 2025 testimony to the Senate Banking Committee where he denied features like 'new marble,' 'special elevators,' 'water features,' 'beehives,' and 'roof garden terraces'
• The renovation of two Fed office buildings in Washington's Foggy Bottom neighborhood carries an estimated cost of $2.5 billion, funded by the central bank's self-financing operations rather than congressional appropriations
• President Trump has previously threatened legal action over the renovations, with completion expected fall 2027 and employees returning to the building in March 2028

Summary: Federal Reserve Chair Powell Under Criminal Investigation Over Headquarters Renovation

The US Attorney's Office for the District of Columbia has launched a criminal investigation into Federal Reserve Chair Jerome Powell regarding the Federal Reserve headquarters renovation and the accuracy of his congressional testimony about the project.

Key Details:

The probe examines whether Powell truthfully characterized the scope and cost of the renovation during congressional appearances. The project involves renovating the Fed's two main office buildings in Washington's Foggy Bottom neighborhood, with an estimated cost of $2.5 billion.

Critically, the renovation is self-funded by the Federal Reserve—not taxpayer money. The Fed finances operations through interest earned on government securities and fees charged to financial institutions, operating independently of congressional appropriations.

Powell's Defense:

In June 2025 testimony before the Senate Banking Committee, Powell denied extravagant features, stating: "There's no new marble. There are no special elevators...no new water features...no beehives, and there's no roof garden terraces."

Powell justified the project by citing safety concerns, noting the Eccles Building "needed a serious renovation" and is "not really safe" and not waterproof. He acknowledged reluctance to undertake major renovations during his tenure but deemed it necessary.

Timeline and Political Context:

The project is scheduled for completion in fall 2027, with employees returning in March 2028. President Donald Trump has previously threatened legal action over the renovations, adding political pressure to the situation.

Market Implications:

This investigation could potentially impact Fed leadership stability and market confidence in monetary policy decision-making, though the Fed has not yet commented on the probe.