Story perspectives

Powell Stays Put Amid DOJ Probe Over Fed Renovation

3/20/2026

Summary

Story summary

Federal Reserve Chairman Jerome Powell will remain in office during the Department of Justice investigation into his congressional testimony about a $2.5 billion renovation of the Fed's headquarters.
He would serve as chair pro tempore if no successor is confirmed by May's end.
Powell described probe as unprecedented and tied it to U.S. President Donald Trump’s pressure campaign, while denying extravagance and attributing cost overruns to construction challenges and inflation.

History

Historical Context

The Federal Reserve's $2.5 billion renovation of its headquarters, initiated in 2018, faced scrutiny amid rising tensions with the Trump administration. Critics, including Senator Elizabeth Warren, raised concerns over costs and transparency, reflecting historical conflicts between government oversight and central bank independence. This investigation into Jerome Powell's testimony echoes past tensions, potentially impacting the Federal Reserve's governance and its relationship with the executive branch.

1 of 2

Story summary

Federal Reserve Chairman Jerome Powell will remain in office during the Department of Justice investigation into his congressional testimony about a $2.5 billion renovation of the Fed's headquarters.
He would serve as chair pro tempore if no successor is confirmed by May's end.
Powell described probe as unprecedented and tied it to U.S. President Donald Trump’s pressure campaign, while denying extravagance and attributing cost overruns to construction challenges and inflation.

1 / 2