The DOJ is probing Fed Chair Powell over his 2025 testimony on a $2.5B headquarters renovation, sparking concerns about political influence on monetary policy.

The Justice Department is investigating Federal Reserve Chair Jerome Powell over his June 2025 testimony on the Fed’s $2.5 billion headquarters renovation, which has drawn scrutiny for cost overruns and alleged false statements about luxury features. Powell, a Trump appointee, denies wrongdoing, calling the probe politically motivated and an attempt to pressure the Fed into lowering interest rates. The investigation, involving subpoenas and a change in lead prosecutors, has triggered concerns about central bank independence. Senator Thom Tillis, awaiting the DOJ’s conclusion, is blocking Kevin Warsh’s nomination as Powell’s successor, citing the need for legal clarity. The situation has heightened tensions over political influence on monetary policy amid economic challenges including inflation, job losses, and global oil disruptions.