Federal prosecutors open criminal investigation into the Fed and Jerome Powell

Federal prosecutors have opened a criminal investigation into the Federal Reserve's $2.5 billion headquarters renovation and the Justice Department subpoenaed the Fed; Fed Chair Jerome Powell said the move raised concerns about the central bank's independence.

Federal prosecutors have opened a criminal investigation into the Federal Reserve's $2.5 billion renovation of its Washington, D.C. headquarters, and the Justice Department issued subpoenas to the Fed. Fed Chair Jerome Powell said the subpoenas could lead to possible criminal charges and framed the action in the context of pressure on monetary policy decisions. The White House and the Justice Department declined detailed comment, and the U.S. attorney's office handling the matter said it does not comment on ongoing investigations. Key developments: - The Justice Department issued subpoenas and prosecutors have opened a criminal investigation tied to the Federal Reserve's $2.5 billion headquarters renovation. - Fed Chair Jerome Powell said the subpoenas threaten possible criminal charges and linked the action to broader pressure on the Fed over interest-rate decisions. - The Justice Department and the U.S. attorney's office declined to provide details, and no public timetable for further steps has been announced. Summary: The investigation has increased attention on tensions around the Federal Reserve's independence and the relationship between the administration and the central bank. Undetermined at this time.