DOJ probes Fed Chair Powell over renovation claims

Federal prosecutors on Sunday announced a criminal investigation of Federal Reserve Chair Jerome Powell, citing alleged false testimony about the Fed’s $2.5 billion headquarters renovation. The probe was prompted by a 2025 testimony in which Powell denied cost overruns that former House Rep Anna Paulina Luna had reported. Trump’s administration has criticized the renovation and has urged the Fed to cut rates, fueling Powell’s claim that the investigation is politically motivated. U.S. Attorney Pam Bondi instructed prosecutors to investigate alleged misuse of taxpayer funds. The inquiry comes as Powell’s chairmanship ends in May 2026, though he will remain on the Board until 2028. The investigation adds to mounting pressure on federal‑reserve independence.