Federal prosecutors open criminal investigation into the Fed and Jerome Powell
CNN••general
Key Points:
- Federal prosecutors have launched a criminal investigation into the Federal Reserve’s $2.5 billion renovation of its Washington, DC headquarters amid allegations of mismanagement.
- Fed Chair Jerome Powell labeled the probe as a politically motivated "pretext," linking it to ongoing tensions with the Trump administration over interest rate policies.
- The Justice Department declined to comment on the investigation but emphasized prioritizing probes into potential taxpayer fund abuses.
- President Trump and his allies have criticized Powell for not lowering interest rates as desired and have targeted Fed Governor Lisa Cook, with a Supreme Court hearing pending on her potential removal.
- The renovation controversy arose after Powell testified that the project involved multiple agencies and evolving costs, with the Fed defending the upgrades as necessary for safety and infrastructure improvements.
