From Fox Business: President Donald Trump said Monday that the Justice Department will not drop its criminal investigation into Federal Reserve Chairman Jerome Powell.
Speaking to reporters in the Oval Office, Trump said Jeanine Pirro, the U.S. attorney for the District of Columbia, will “take it to the end and see.”
Trump added that the rising cost of renovating the Fed’s two main buildings along the National Mall is “either gross incompetence or it’s theft of some kind or kickbacks.” He also said he “feels badly” for Kevin Warsh, whom he recently nominated to succeed Powell in May. “He may not have an office for four years,” Trump said, referring to the overhaul of the Fed’s buildings.
“They’ve spent almost $4 billion doing this whole renovation. I’m doing buildings – I built a hotel, the Waldorf and I did it for around $200 million,” Trump said, adding that his previous real estate projects eclipse the size and scope of the Federal Reserve renovations.
The renovation costs are now at the center of a Justice Department criminal investigation opened in January into Powell’s congressional testimony about the project. The renovation is estimated to cost $2.5 billion and will be funded by the central bank, not taxpayers. The Federal Reserve is self-financing and does not rely on congressional appropriations; it covers expenses through interest on government securities and fees charged to financial institutions.
Powell called the move “unprecedented” in a Jan. 11 video statement, describing it as another example of President Trump’s ongoing threats against the central bank. His unusually public response, after days of private consultation with advisers, marked a sharp break from his typically restrained approach.
In June 2025, Powell told members of the Senate Banking Committee, “There’s no new marble. There are no special elevators. They’re old elevators that have been there. There are no new water features. There are no beehives, and there’s no roof garden terraces.”
Powell also informed lawmakers that no one “wants to do a major renovation of a historic building during their term in office.”
“We decided to take it on because, honestly, when I was the administrative governor, before I became chair, I came to understand how badly the Eccles Building really needed a serious renovation,” Powell said, adding that the building is “not really safe” and not waterproof.
He said the cost overruns stem in part from unexpected construction challenges and inflation. President Trump has previously threatened legal action over the renovations and mocked the project’s cost and design.
“They’re building a basement into the Potomac River. I could have told them. That’s very tough to do, and it doesn’t work, and it’s very expensive,” Trump said. “But they’re up to $4 billion, headed by this clown [Powell].”
Warsh’s confirmation to lead the world’s most powerful central bank could be delayed by Republican opposition tied to the criminal probe of Powell. Although Warsh needs only a simple majority in the Senate, his nomination must first clear the Senate Banking Committee.
Sen. Thom Tillis (R-N.C.) said last week he will oppose any Federal Reserve nominee until the Trump administration concludes its investigation into Powell. Given Tillis’s seat on the Banking Committee, his hold could effectively stall Warsh’s nomination. Forcing it out would require a rare discharge vote on the Senate floor needing 60 votes — an unlikely outcome in a closely divided Senate amid ongoing tensions over the investigation.
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