Criminal Investigation Launched Against Fed’s Powell Regarding Headquarters Renovation, Report Reveals
President Donald Trump has issued a threat to sue Federal Reserve Chair Jerome Powell regarding the central bank’s expensive renovation project.
The U.S. attorney’s office for the District of Columbia has initiated a criminal investigation into Jerome Powell, focusing on the renovation of the Federal Reserve’s Washington headquarters. This inquiry seeks to determine whether Powell was truthful during his congressional testimony about the project, as reported by The New York Times.
According to officials, the investigation centers on whether Powell accurately represented the scope and cost of the renovation during his appearances before Congress.
THE FED’S $2.5B RENOVATION IS IRKING PRESIDENT TRUMP AND TEAM
Jerome Powell, chairman of the U.S. Federal Reserve, during the Federal Reserve Board open meeting in Washington, DC, US, on Wednesday, June 25, 2025. (Al Drago/Bloomberg via Getty Images / Getty Images)
The renovation of the Federal Reserve’s two main office buildings, located in Washington’s Foggy Bottom neighborhood, is projected to cost $2.5 billion. Notably, this project is being funded entirely by the central bank, without taxpayer dollars.
The Federal Reserve operates on a self-financing model, meaning it does not depend on congressional appropriations for its operating expenses, which include employee salaries and facilities maintenance. Its primary revenue sources are interest earned on government securities and fees charged to financial institutions.
A LOOK AT THE UNFOLDING BATTLE BETWEEN TRUMP AND POWELL OVER FED POLICY
The grand atrium of the Marriner S. Eccles Federal Reserve building during a media tour of the renovation of the central bank’s headquarters in Washington, D.C., on July 24, 2025. (Andrew Harnik/Getty Images / Getty Images)
During a Senate Banking Committee meeting in June 2025, Powell stated, “There’s no new marble. There are no special elevators. They’re old elevators that have been there. There are no new water features. There are no beehives, and there’s no roof garden terraces.”
He further explained that no one desires to undertake a significant renovation of a historic building during their term, but he felt compelled to address the urgent needs of the Eccles Building. Powell emphasized that the building is “not really safe” and lacks waterproofing.
TOP TRUMP OFFICIAL SLATED TO INSPECT FED’S $2.5B RENOVATION AMID COST SCRUTINY
The main two-story board room of the Marriner S. Eccles Federal Reserve building during a media tour of the renovation of the central bank’s headquarters in Washington, D.C., on July 24, 2025. (Andrew Harnik/Getty Images / Getty Images)
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President Donald Trump has previously threatened legal action regarding the renovations.
The renovation project is anticipated to be completed by the fall of 2027, with Washington-based employees expected to resume work in the building by March 2028.
President Donald Trump has issued a threat to sue Federal Reserve Chair Jerome Powell regarding the central bank’s expensive renovation project.
The U.S. attorney’s office for the District of Columbia has initiated a criminal investigation into Jerome Powell, focusing on the renovation of the Federal Reserve’s Washington headquarters. This inquiry seeks to determine whether Powell was truthful during his congressional testimony about the project, as reported by The New York Times.
According to officials, the investigation centers on whether Powell accurately represented the scope and cost of the renovation during his appearances before Congress.
THE FED’S $2.5B RENOVATION IS IRKING PRESIDENT TRUMP AND TEAM
Jerome Powell, chairman of the U.S. Federal Reserve, during the Federal Reserve Board open meeting in Washington, DC, US, on Wednesday, June 25, 2025. (Al Drago/Bloomberg via Getty Images / Getty Images)
The renovation of the Federal Reserve’s two main office buildings, located in Washington’s Foggy Bottom neighborhood, is projected to cost $2.5 billion. Notably, this project is being funded entirely by the central bank, without taxpayer dollars.
The Federal Reserve operates on a self-financing model, meaning it does not depend on congressional appropriations for its operating expenses, which include employee salaries and facilities maintenance. Its primary revenue sources are interest earned on government securities and fees charged to financial institutions.
A LOOK AT THE UNFOLDING BATTLE BETWEEN TRUMP AND POWELL OVER FED POLICY
The grand atrium of the Marriner S. Eccles Federal Reserve building during a media tour of the renovation of the central bank’s headquarters in Washington, D.C., on July 24, 2025. (Andrew Harnik/Getty Images / Getty Images)
During a Senate Banking Committee meeting in June 2025, Powell stated, “There’s no new marble. There are no special elevators. They’re old elevators that have been there. There are no new water features. There are no beehives, and there’s no roof garden terraces.”
He further explained that no one desires to undertake a significant renovation of a historic building during their term, but he felt compelled to address the urgent needs of the Eccles Building. Powell emphasized that the building is “not really safe” and lacks waterproofing.
TOP TRUMP OFFICIAL SLATED TO INSPECT FED’S $2.5B RENOVATION AMID COST SCRUTINY
The main two-story board room of the Marriner S. Eccles Federal Reserve building during a media tour of the renovation of the central bank’s headquarters in Washington, D.C., on July 24, 2025. (Andrew Harnik/Getty Images / Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
President Donald Trump has previously threatened legal action regarding the renovations.
The renovation project is anticipated to be completed by the fall of 2027, with Washington-based employees expected to resume work in the building by March 2028.
