Story perspectives

Powell Faces Criminal Probe Over Fed Renovation Testimony

1/13/2026

Summary

Powell Under Investigation

Federal Reserve Chair Jerome Powell says the Department of Justice opened a criminal investigation into his testimony about the $2.5 billion renovation of the Fed's headquarters.
Powell says the probe is politically motivated, tied to U.S. President Donald Trump’s push for lower rates.
Republican Senators Thom Tillis and Lisa Murkowski voiced concerns about Fed independence.
Powell’s term ends in May, potentially leaving him on the board through 2028 and complicating Trump’s replacement plans.

History

Historical Context

The Federal Reserve Act, enacted on December 23, 1913, established the Federal Reserve System in response to the Panic of 1907, aiming to stabilize the U.S. financial system. This act created a central bank with twelve regional banks and a governing board, balancing private and public interests. Ongoing scrutiny of the Fed's independence, as seen in Jerome Powell's investigation, echoes historical tensions between political influence and central banking autonomy.

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Powell Under Investigation

Federal Reserve Chair Jerome Powell says the Department of Justice opened a criminal investigation into his testimony about the $2.5 billion renovation of the Fed's headquarters.
Powell says the probe is politically motivated, tied to U.S. President Donald Trump’s push for lower rates.
Republican Senators Thom Tillis and Lisa Murkowski voiced concerns about Fed independence.
Powell’s term ends in May, potentially leaving him on the board through 2028 and complicating Trump’s replacement plans.

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