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A Justice Department probe into the Fed’s $2.5B headquarters renovation sparked political conflict, raising fears of interference in monetary policy.
Tensions escalated between the Federal Reserve and the Trump administration in late December 2025 and early January 2026 over a Justice Department inquiry into the Fed’s $2.5 billion headquarters renovation, initially projected at $1.9 billion.
The probe, which began in November without FBI involvement, focuses on cost controls amid pandemic-related delays.
Two emails from a political appointee raised concerns at the Fed, prompting silence that was interpreted as stonewalling.
President Trump and some Republicans criticized the project as wasteful and politically motivated, while Fed leaders and bipartisan lawmakers warned the investigation threatens the central bank’s independence.
Despite no formal criminal charges, the situation has fueled concerns about political interference in monetary policy.
The Fed has retained outside legal counsel, and international central bank leaders have publicly backed Chair Powell.
Una investigación del Departamento de Justicia sobre la renovación de la sede de la Fed de $2.5 mil millones provocó un conflicto político, aumentando los temores de interferencia en la política monetaria.