Fed Chair Powell Faces Scrutiny Over $2.5B Renovation Testimony as DOJ Launches Probe
Federal Reserve Chair Jerome Powell is embroiled in a political and legal battle following revelations about a previously undisclosed four-page letter sent to bipartisan senators in July. The correspondence detailed the $2.5 billion renovation of the Fed's headquarters—a project now $700 million over budget and slated for completion next year.
The controversy stems from Powell's June 25 testimony before the Senate Banking Committee, which the TRUMP administration alleges misrepresented the scope and costs of the renovations. The Department of Justice has escalated matters by opening a criminal investigation and subpoenaing the Fed via a federal grand jury.
This development arrives as the Trump administration, now in its second term following the 2024 election, intensifies scrutiny of central bank operations. The renovation project, approved in 2017, covers the Fed's historic 1930s building and adjacent facilities.
