President Donald Trump threatened to sue Federal Reserve Chair Jerome Powell over the central financial institution’s pricey renovation undertaking.
The U.S. legal professional’s workplace for the District of Columbia has opened a felony investigation into Federal Reserve Chair Jerome Powell, specializing in the renovation of the central financial institution’s Washington headquarters and whether or not he was truthful in his congressional testimony concerning the undertaking.
Officers advised The New York Occasions, which was first to report the probe, that it facilities on whether or not Powell precisely characterised the scope and price of the renovation throughout congressional appearances.
THE FED’S $2.5B RENOVATION IS IRKING PRESIDENT TRUMP AND TEAM
Jerome Powell, chairman of the U.S. Federal Reserve, throughout the Federal Reserve Board open assembly in Washington, DC, US, on Wednesday, June 25, 2025. (Al Drago/Bloomberg by way of Getty Pictures / Getty Pictures)
Powell confirmed the Federal Reserve had been served. He stated he revered the rule of legislation and congressional oversight however described the Justice Division’s transfer as “unprecedented” and politically motivated.
“This new menace is just not about my testimony final June or concerning the renovation of the Federal Reserve buildings,” Powell stated in a video assertion Sunday night.
“The specter of felony costs is a consequence of the Federal Reserve setting rates of interest primarily based on our greatest evaluation of what is going to serve the general public, reasonably than following the preferences of the President,” he added.
The White Home didn’t instantly reply to Fox Information Digital’s request for remark.
U.S. President Donald Trump and Federal Reserve Chair Jerome Powell converse throughout a tour of the Federal Reserve Board constructing, which is at present present process renovations, in Washington, D.C., July 24, 2025. (REUTERS/Kent Nishimura / Reuters)
Tensions between President Donald Trump and Powell have simmered over the central financial institution’s rate of interest choices and broader financial insurance policies. Trump has instructed the Fed to chop charges, which he says may save the nation “tons of of billions of {dollars}.”
Powell held the benchmark charge at 4.25% to 4.5% because the Fed took a wait-and-see strategy to evaluate the impression of Trump’s sweeping tariffs. Whereas the central financial institution has since lowered charges, Trump’s assaults on Powell, whom he appointed in 2017, have more and more taken on a private tone, together with the usage of mocking nicknames.
A LOOK AT THE UNFOLDING BATTLE BETWEEN TRUMP AND POWELL OVER FED POLICY
That strained relationship has more and more prolonged past financial coverage.
The renovation of the Federal Reserve’s two principal workplace buildings in Washington’s Foggy Backside neighborhood is estimated to value $2.5 billion and is being funded by the central financial institution itself, not by taxpayers.
The Fed is self-financing and doesn’t depend on congressional appropriations to cowl its working bills, which embody worker salaries, amenities upkeep and the present renovation. Its main earnings comes from curiosity earned on authorities securities and costs charged to monetary establishments.
The grand atrium of the Marriner S. Eccles Federal Reserve constructing throughout a media tour of the renovation of the central financial institution’s headquarters in Washington, D.C., on July 24, 2025. (Andrew Harnik/Getty Pictures / Getty Pictures)
In June 2025, Powell advised members of the Senate Banking Committee that “There’s no new marble. There are not any particular elevators. They’re outdated elevators which have been there. There are not any new water options. There are not any beehives, and there’s no roof backyard terraces.”
Powell additionally advised lawmakers that nobody “desires to do a significant renovation of a historic constructing throughout their time period in workplace.”
“We determined to take it on as a result of, actually, once I was the executive governor, earlier than I turned chair, I got here to know how badly the Eccles Constructing actually wanted a critical renovation,” Powell stated, including that the constructing is “not likely secure” and never waterproof.
TOP TRUMP OFFICIAL SLATED TO INSPECT FED’S $2.5B RENOVATION AMID COST SCRUTINY
The principle two-story board room of the Marriner S. Eccles Federal Reserve constructing throughout a media tour of the renovation of the central financial institution’s headquarters in Washington, D.C., on July 24, 2025. (Andrew Harnik/Getty Pictures / Getty Pictures)
He additionally stated that the associated fee overruns are due, partly, to sudden development challenges and the nation’s inflation charge.
The undertaking is anticipated to be accomplished within the fall of 2027, with Washington-based staff anticipated to start working within the constructing in March 2028.
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Trump has beforehand threatened authorized motion over the renovations and mocked the undertaking’s value and design.
“They’re constructing a basement into the Potomac River. I may have advised them that’s very robust to do, and it doesn’t work, and it’s very costly,” Trump stated. “However they’re as much as $4 billion, headed by this clown,” he added in November, referring to Powell.
The undertaking is scheduled for completion within the fall of 2027, with Washington-based staff anticipated to start occupying the constructing in March 2028.
