Powell Quietly Called 13 Lawmakers After DOJ Opened Criminal Probe
Newly released Federal Reserve calendars show Chair Jerome Powell made 13 separate phone calls to senators and House members in the days after the Trump Justice Department opened a criminal investigation into his June 2025 testimony about the Fed’s $2.5 billion headquarters renovation, and after he publicly accused DOJ of using subpoenas as a 'pretext' to pressure the central bank to cut rates. The 10‑ to 15‑minute calls, plus a Jan. 15 breakfast with Treasury Secretary Scott Bessent, were concentrated in the week of Jan. 11, 2026, and included top Republicans and Democrats such as Mitch McConnell, Tim Scott, Mark Warner, Maxine Waters and Hakeem Jeffries, though the calendar does not disclose what was discussed. Powell, already known for unusually heavy one‑on‑one outreach to Capitol Hill, has called the criminal probe 'unprecedented' for a sitting Fed chair and framed it as part of President Donald Trump’s broader pressure campaign on monetary policy. The investigation focuses on whether Powell’s sworn assurances that the historic Marriner Eccles building renovation lacked certain luxury features misrepresented the project, even though the work is funded by the Fed’s own revenues rather than appropriated taxpayer dollars. The behind‑the‑scenes lobbying burst is fueling concern among some economists and commentators that the standoff between the White House, DOJ and the Fed is eroding central‑bank independence, a risk markets are watching closely as inflation, rates and political interference collide in an election‑cycle economy.
📌 Key Facts
- Powell disclosed on Jan. 11, 2026, that DOJ had opened a criminal investigation tied to his June 2025 congressional testimony on the Federal Reserve’s headquarters renovation.
- His newly released calendar shows 13 calls with members of Congress and a Jan. 15 breakfast with Treasury Secretary Scott Bessent clustered in the days immediately after that disclosure.
- The probe centers on statements Powell made under oath about the absence of luxury features in the $2.5 billion renovation of the Marriner S. Eccles building, a project financed by the Fed’s own funds rather than congressional appropriations.
📊 Relevant Data
The Federal Reserve's headquarters renovation project includes features such as a glass-enclosed atrium in the courtyard, a new fitness center, and expanded conference spaces, which have been alleged by some to constitute luxury additions despite the Fed's denials.
Peek Inside the Federal Reserve Renovations at the Core of a DOJ Probe — Business Insider
The cost of the Federal Reserve's renovation increased from an initial estimate of $1.9 billion to $2.5 billion, with overruns driven by inflation, tariffs on materials, unforeseen hazardous materials like lead paint and asbestos, and security enhancements such as blast-resistant windows and shear walls.
The Fed just gave a rare look at its $2.5 billion renovation — CNN
According to a GAO report, the National Nuclear Security Administration's major construction projects experienced cumulative cost growth rising from $2.1 billion in 2023 to $4.8 billion as of June 2025, illustrating common overruns in federal projects.
GAO Finds Mounting Costs, Years-Long Delays Across NNSA Nuclear Projects — ENR
A Senate report highlights $162.9 billion in cost overruns across over a dozen U.S. infrastructure projects, providing broader context for renovation expenses, though the Fed's project is self-funded rather than taxpayer-supported.
Taxpayers on hook for $163B in project overruns, including $1.4B for controversial Fed renovations, Senate report shows — New York Post
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