The US Attorney’s office in the District of Columbia has initiated a criminal investigation into Federal Reserve chairman Jerome Powell, according to a report in The New York Times on Sunday. The inquiry centres on the Federal Reserve’s renovation of its Washington headquarters and allegations of potential misstatements made by Powell to Congress regarding the project’s scope.
The investigation, which reportedly includes a detailed analysis of Powell’s public statements and a review of spending records related to the headquarters renovation, was given the go-ahead in November by Attorney Jeanine Pirro. The New York Times cited officials briefed on the situation as the source of this information. This development adds significant scrutiny to Powell’s leadership at the Federal Reserve, which plays a critical role in the US economy by managing monetary policy and regulating banks.
The Federal Reserve, often referred to as the Fed, is the central banking system of the United States. It conducts the nation’s monetary policy, supervises and regulates banking institutions, and maintains the stability of the financial system. The investigation will likely focus on whether Powell misled lawmakers about the budget and scale of the Fed’s renovation project, potentially leading to legal repercussions depending on the findings.
At this point in time, no further details regarding the specific allegations or timeline of the investigation have been publicly released by the Justice Department or the Federal Reserve. The outcome of the investigation could have far-reaching implications for Powell’s tenure as chairman and for the Fed’s credibility.
