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Criminal Investigation Launched into Federal Reserve's Renovation Project

KVIA•Monday, January 12, 2026 at 12:49 AM•CNN Newsource

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AI Summary

Federal prosecutors have initiated a criminal investigation concerning the Federal Reserve's $2.5 billion renovation of its headquarters in Washington, D.C. Fed Chair Jerome Powell characterized the inquiry as a 'pretext' stemming from political pressures regarding interest rate decisions, particularly from President Trump. This investigation raises concerns about the independence of the Federal Reserve, as it may influence future leadership decisions and monetary policy. Powell emphasized that the Fed must prioritize economic evidence over political demands. The probe follows ongoing criticism from Trump and his allies about the management of the renovation project, which includes essential upgrades like asbestos removal.

Key Details: • Investigation focuses on a $2.5 billion renovation project at the Federal Reserve. • Powell's term ends in May, and Trump is expected to announce a replacement soon. • The Supreme Court will hear arguments regarding the potential firing of Fed Governor Lisa Cook.

politics trump investigation federal-reserve jerome-powell

People & Organizations

Donald TrumpJustice DepartmentFederal ReserveJerome PowellWashington, D.C.Bill PulteLisa CookChad GilmartinRuss VoughtOffice of Management and Budget

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