DOJ Issues Grand Jury Subpoenas to Powell The Justice Department served grand‑jury subpoenas to Federal Reserve Chair Jerome Powell on Friday, signaling a possible criminal indictment tied to his June Senate Banking Committee testimony about the Fed’s headquarters renovation. Both the AP and Newsweek report the subpoenas are part of a broader investigation into alleged misuse of taxpayer funds for the project. The move intensifies a political showdown that critics say threatens the central bank’s operational independence. [1][2]

Renovation Budget Swells to Approximately $2.5 B The Fed’s renovation of the Marriner S. Eccles Building and an adjacent structure has risen from an original $1.9 billion estimate to roughly $2.5 billion, about $600 million over budget. Inflation in 2021‑2022, unexpected asbestos removal, and required underground work because of height restrictions are identified as primary cost drivers. Both outlets note the project is financed internally by the Fed, not by taxpayers, though the White House emphasizes the contrast with a privately funded $250 million ballroom addition. [1][2]

Powell Refutes Claims of Luxury Additions In congressional testimony, Powell denied allegations that the renovation includes new marble, VIP dining rooms, special elevators, water features, or rooftop terrace gardens, stating those items were removed from earlier plans. The White House budget director had described the overhaul as ostentatious, but Powell’s rebuttal aligns with the Fed’s own statements. This dispute over project optics underscores the political pressure surrounding the renovation. [1][2]

Political Fallout Extends to Future Fed Nominations Republican senators, including Thom Tillis, have warned they will oppose future Fed chair nominations until the investigation concludes, framing the case as a test of central‑bank independence. The DOJ, under Attorney General Pam Bondi, has instructed U.S. attorneys to prioritize any abuse of taxpayer dollars, adding a partisan dimension to the probe. Powell responded in a video, calling the subpoenas intimidation and pledging to stay focused on his duties. [1][2]