News
DOJ Investigation · Federal Reserve · Jerome Powell · Leadership Uncertainty
President Donald Trump announced the Justice Department will not cease its criminal investigation into Federal Reserve Chairman Jerome Powell, focusing on the Federal Reserve's $2.5 billion renovation project, which Trump alleges involves "gross incompetence or theft." The investigation, opened in January, centers on Powell's congressional testimony regarding the renovation costs.
Powell, who called the probe "unprecedented," stated the project is self-funded by the central bank, not taxpayers, and is necessary due to the building's unsafe condition and unexpected construction challenges. He also cited inflation as a factor in cost overruns.
Trump, however, claims the costs are closer to $4 billion and has publicly criticized the project's scope and expense. This ongoing probe creates significant uncertainty for the Federal Reserve's leadership, as Senator Thom Tillis (R-N.C.) has declared opposition to confirming any new Fed nominee, including Trump's pick Kevin Warsh, until the investigation into Powell concludes.
This resistance complicates Warsh's path to confirmation, requiring a difficult 60-vote discharge in the Senate.
Trump Continues Powell Probe; Fed Leadership Uncertain(current)
