In November 2025, the United States Attorney’s Office in Washington launched a criminal investigation against Jerome Powell, Chairman of the Federal Reserve, who has been managing a headquarters renovation project estimated at around 2.5 billion dollars. On January 16, 2026, Powell revealed that he had received grand jury subpoenas issued by the Department of Justice related to the inquiry.
Judge James Boasberg annulled these subpoenas in March, stating that they aimed to pressure Powell to lower interest rates or resign from office. Despite this, Powell will remain in charge of the Federal Reserve until May 2026 and may participate in monetary policy decisions until 2028.
On April 21, 2026, two prosecutors and an investigator associated with Prosecutor Jeanine Pirro’s office tried to access, without prior notice, the renovation works at the Federal Reserve headquarters. However, access was denied, and the institution’s legal team contacted the agents to contest the visit.
Robert Hur, an external lawyer for the Federal Reserve, issued a letter to prosecutors Carlton Davis, Steven Vandervelden and investigator Matthew Fox-Moles, questioning the legality of the action. He cited Judge Boasberg’s decision, which classified the prosecutors’ interest as a pretext to pressure the institution’s leadership.
The investigation has not yet resulted in formal criminal charges. However, those who reported the situation criticize the costs of the renovation project, which exceeded the initial budget by nearly 80%. The Department of Justice refused to review the court decision that annulled the subpoenas issued against Powell.
Investigative efforts focus on statements made by Powell during a Senate hearing in June 2025, as well as on a detailed analysis of the renovation expenses. It is worth noting that the Federal Reserve is not funded by federal public resources, which differentiates its budget from conventional government institutions.
Additionally, the Federal Reserve chairman has been the target of criticism from former President Donald Trump, who demands a faster reduction of interest rates. Likewise, Republican Senator Thom Tillis has conditioned approval of Trump’s nominee for the presidency of the institution on the definitive conclusion of this investigation.
The episode of the unannounced attempt to visit the Federal Reserve headquarters highlights the tense climate surrounding the inquiry. The conclusion of the process still depends on judicial and administrative developments, which should be monitored in the coming weeks to determine the next steps of the investigation.
