Trump says DOJ won’t drop Powell’s criminal investigation into Fed fixing
Trump and Federal Reserve Chairman Jerome Powell got into an awkward on-camera confrontation during the president’s visit to Fed headquarters.
The president Donald Trump said Monday that the Justice Department would not drop its criminal investigation into Federal Reserve Chairman Jerome Powell.
Speaking to reporters in the Oval Office, Trump said Jeanine Pirro, the US attorney for the District of Columbia, “will take it to the end and see.”
Trump added that the rising cost of renovating the Fed’s two main buildings near the National Mall “could be a huge failure or theft of some kind or criminals.” He also said he “feels bad” for Kevin Warsh, who he recently tapped to take over from Powell in May. “He may not be in office for four years,” Trump said, referring to the renovation of the Fed’s buildings.
President Donald Trump speaks with Fed Chairman Jerome Powell during a visit to the Federal Reserve in Washington, DC, on July 24, 2025. (Official White House Photo by Daniel Torok)
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“They spent about 4 billion dollars doing all these renovations. I did buildings – I built a hotel, a Waldorf and I did it for about 200 million dollars,” said Trump, adding that his previous real estate projects exceeded the size and scope of the area. The Federal Reserve preparation.
The Federal Reserve did not immediately respond to Fox News Digital’s request for comment.
The repair costs are now at the center of a Justice Department criminal investigation that was opened in January by Powell’s congressional testimony about the project.
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Construction of the Mariner S. Eccles Federal Reserve building in Washington, DC, on July 14, 2025. (Al Drago/Bloomberg via Getty Images)
Powell called the move “unprecedented” in a January 11 video statement and another example of what he described as Trump’s continued threats to the central bank. His decision to respond publicly, after days of private consultation with advisers, marked a departure from his usual approach.
The overhaul is estimated to cost $2.5 billion and is funded by the central bank itself, not taxpayers.
The Fed is self-financing and does not rely on congressional appropriations to cover its operating expenses, which include employee salaries, facilities maintenance and current repairs. Primary income comes from interest earned on government securities and fees charged by financial institutions.
The main atrium of the Marriner S. Eccles Federal Reserve building during a media tour of the central bank’s headquarters renovation in Washington, DC, on July 24, 2025. (Andrew Harnik/Getty Images)
In June 2025, Powell told members of the Senate Banking Committee that “There is no new marble. No special elevators. Old elevators have been. No new water features. No beehives, and no rooftop gardens.”
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Powell also told lawmakers that no one “wants to do a major renovation of a historic building during the administration.”
“We decided to take it because, frankly, when I was the governor of the administration, before I became the chairman, I understood how much the Eccles Building really needed serious repairs,” Powell said, adding that the building is “not really safe” and is not waterproof.
The Mariner S. Eccles Federal Reserve Board Building is seen as major renovations continue to the building and the 1951 Constitution Avenue Building on July 24, 2025, in Washington, DC. (Andrew Harnik/Getty Images)
He also said the cost overruns were due, in part, to unexpected construction challenges and the country’s inflation rate.
Trump has previously threatened legal action over the plan’s overhaul and mocked its cost and design.
“They’re building an underground facility on the Potomac River. I would have told them. That’s very hard to do, and it’s ineffective, and it’s very expensive,” Trump said. “But they reached $4 billion, led by this artist,” he added in Novemberreferring to Powell.
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Meanwhile, Warsh’s confirmation to lead the world’s most powerful bank could be delayed by Republican opponents linked to Powell’s criminal investigation.
Warsh but must first be confirmed by a simple majority in the Senate, a process that usually begins with a hearing and vote in the Senate Banking Committee.
Kevin Warsh during the International Monetary Fund and World Bank Spring meetings at IMF headquarters in Washington, DC, on April 25, 2025. (Tierney L. Cross/Bloomberg via Getty Images)
Sen. Thom Tillis, The R.N.C., said last week that it would oppose the confirmation of any Federal Reserve nominee until the Trump administration completes its investigation of Powell. Tillis’ opposition carries special weight given her position on the Senate Banking Committee.
With Tillis involved in Warsh’s nomination, the only way to force him off the Senate Banking Committee would be through a vote of expulsion on the Senate floor, a move that requires 60 votes and is unlikely in a divided Senate, especially amid tensions over the Powell investigation.
