Fed’s Powell under criminal investigation over HQ renovation, report

The US Attorney’s Office for the District of Columbia has opened a criminal investigation into Federal Reserve Chairman Jerome Powell, focusing on the renovation of the central bank’s headquarters in Washington and whether he was truthful in his testimony before congress about the project, according to a New York Times report.

The investigation is focusing on whether Powell accurately described the scope and cost of the renewal during his appearances in Congress, officials told the Times.

Fed’s $2.5 Billion Replenishment Irritates President Trump and His Team

The renovation of the Fed’s two main office buildings in Washington’s Foggy Bottom neighborhood is estimated to cost $2.5 billion, and is being financed by the central bank itself, not taxpayers.

The Fed is self-funding and does not rely on congressional appropriations to cover its operating expenses, which include employee salaries, facility maintenance, and existing renovations. Its primary income comes from interest earned on government securities and fees charged to financial institutions.

A look at the ongoing battle between Trump and Powell over Federal Reserve policy

The grand atrium of the Federal Reserve Building Marriner S. Eccles during a media tour of the renovation of the central bank’s headquarters in Washington, D.C., on July 24, 2025. (Andrew Harnick/Getty Images/Getty Images)

In June 2025, Powell told members of the Senate Banking Committee that “there is no new marble. There are no private elevators. They are old elevators that were there. There are no new water features. There are no beehives, there are no roof garden terraces.”

Powell also told lawmakers that no one “wants to undertake a major renovation of a historic building during his term.”

“We decided to do this because, frankly, when I was the administrative governor, before I became president, I realized how much the Eccles Building really needed a serious renovation,” Powell said, adding that the building is “not really safe” and not waterproof.

A senior Trump official is set to inspect the Federal Reserve’s $2.5 billion revamp amid scrutiny of the cost

The two-story main board room of the Federal Reserve Building Marriner S. Eccles during a media tour of the renovation of the central bank’s headquarters in Washington, D.C., on July 24, 2025. (Andrew Harnick/Getty Images/Getty Images)

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president Donald Trump It has previously threatened legal action over the renewals.

The project is expected to be completed in the fall of 2027, and Washington-based employees are expected to begin working on the building in March 2028.