Investigation of Fed chief Jerome Powell: What Trump has said about him

"When Federal Reserve Board Chair Jerome Powell said on January 11 that he is being criminally investigated by the federal government, President Donald Trump told NBC News, I don't know anything about it. Trump could have been in the dark about the specifics of the Department of Justice investigation approved in November by United States Attorney for the District of Columbia Jeanine Pirro, The New York Times reported but he has been clear about his desire to oust Powell."

"The investigation focuses on Powell's oversight of the bank's headquarters renovation. He has been accused of misleading the US Congress about the renovation project. The Federal Reserve has been undergoing building renovations since 2021 on a project first approved in Trump's first term. The $2.5bn cost is about $600m over the original budget, because of design changes, higher costs and more asbestos than anticipated."

"The investigation is the most dramatic escalation of long-simmering tensions between Trump and Powell, who the president initially tapped for the top Fed job but who has since drawn Trump's ire with his go-slow approach on lowering interest rates. The Fed has been gradually lowering the interest rates, with three rate cuts at the end of last year. Making the rate too low might push inflation up."

Federal authorities have opened a criminal investigation into Federal Reserve Chair Jerome Powell focused on his oversight of the Fed’s headquarters renovation and allegations he misled Congress. The renovation began in 2021 on a project first approved during President Trump’s term and now carries a $2.5 billion price tag, roughly $600 million over budget due to design changes, higher costs and unexpected asbestos. The inquiry escalates tensions between Powell and President Trump, who criticized Powell’s cautious approach to cutting interest rates and has threatened legal action. The Fed cut rates three times late last year; upcoming meetings on January 27–28 will draw scrutiny.

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