Washington —Federal prosecutors have opened a criminal investigation of Federal Reserve Chair Jerome Powell over his June testimony before Congress about the central bank’s $2.5 billion renovation of its headquarters in Washington, DC. The probe sends a chilling message to Powell – and to whomever might next lead the Fed. Trump’s pressure campaign has included a barrage of personal insults at Powell, evolving into threats to fire the Fed chair. President Donald Trump and Jerome Powell tour the Federal Reserve’s headquarters renovation project in July . Powell’s replacementThe federal probe comes as Trump prepares to announce his pick for Powell’s replacement once his term ends in May.

Source: CNN January 12, 2026 02:20 UTC