The District of Columbia Attorney's Office has initiated criminal proceedings against Federal Reserve (Fed) Chairman Jerome Powell. According to the New York Times, the investigation concerns a large-scale renovation of the Fed's headquarters in Washington and alleged misinformation provided to the U.S. Congress regarding the details of this project. UNN reports this.
Details
The investigation, approved in November by federal prosecutor Jeanine Pirro, focuses on $2.5 billion in expenditures. Preliminary estimates indicate that the cost of the work exceeded the budget by $700 million.
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The main claims concern Powell's testimony to Congress last June. At that time, the Fed chairman denied the presence of "luxury elements" in the project, such as VIP dining rooms, private elevators, and new marble details. Prosecutors are investigating whether these elements were indeed removed from the plan, or if Powell deliberately misled lawmakers.
Political context and Powell's position
Jerome Powell himself calls the case politically motivated. According to him, Donald Trump's administration is using this investigation as a means of pressure due to disagreements over monetary policy. Trump has repeatedly criticized the Fed chairman for refusing to radically lower the key interest rate.
Last week, the U.S. President announced that he had already decided on Powell's successor. Trump's advisor Kevin Hassett is named as the main candidate for the position of Fed chairman.
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