Fed chair Jerome Powell is under federal criminal investigation

Federal prosecutors have opened a criminal investigation into Fed chair Jerome Powell over his testimony and spending tied to a multibillion-dollar renovation; the Justice Department served grand jury subpoenas and Powell has said the inquiry threatens the Fed's independence.

Federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell. Officials say the US Attorney's Office for the District of Columbia is examining whether Powell misled Congress about the scope and cost of a multibillion-dollar renovation of the Fed's Washington headquarters. The Department of Justice served grand jury subpoenas to the Federal Reserve in connection with Powell's testimony. Powell has publicly described the probe as unprecedented and said it could affect the Fed's autonomy. Key facts: - The US Attorney's Office in Washington opened a criminal inquiry into Jerome Powell related to the Fed headquarters renovation. - The investigation is examining Powell's congressional testimony and internal spending records tied to the project. - Justice Department officials served grand jury subpoenas to the Federal Reserve regarding Powell's testimony. - Reporting states the inquiry was approved in November by Jeanine Pirro and Powell has criticized the probe as politically driven. Summary: The inquiry brings criminal scrutiny to the chair of the Federal Reserve and has prompted public statements from Powell about risks to central bank independence. Undetermined at this time.