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President Donald Trump said Monday that the Justice Department will not drop its criminal investigation into Federal Reserve Chairman Jerome Powell.
Speaking to reporters in the Oval Office, Trump said Jeanine Pirro, the U.S. 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 along the National Mall is “either gross incompetence or it’s theft of some kind or kickbacks.” He also said he “feels badly” for Kevin Warsh, whom he recently nominated to succeed Powell in May. “He may not have an office for four years,” Trump said, referring to the overhaul of the Fed’s buildings.
THE FED’S $2.5B RENOVATION IS IRKING PRESIDENT TRUMP AND TEAM
“They’ve spent almost $4 billion doing this whole renovation. I’m doing buildings – I built a hotel, the Waldorf and I did it for around $200 million,” Trump said, adding that his previous real estate projects eclipse the size and scope of the Federal Reserve renovations.
The Federal Reserve did not immediately respond to Fox News Digital’s request for comment.
The renovation costs are now central to a Justice Department criminal investigation opened in January into Powell’s congressional testimony about the project.
FEDERAL RESERVE CHAIR POWELL UNDER CRIMINAL INVESTIGATION OVER HQ RENOVATION
Powell called the move “unprecedented” in a Jan. 11 video statement and another example of what he described as Trump’s ongoing threats lobbed at the central bank. His decision to respond so publicly, after days of private consultation with advisors, marked a sharp departure from his typically measured approach.
The renovation is estimated to cost $2.5 billion and is being funded by the central bank itself, not by 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 the current renovation. Its primary income comes from interest earned on government securities and fees charged to financial institutions.
In June 2025, Powell told members of the Senate Banking Committee that “There’s no new marble. There are no special elevators. They’re old elevators that have been there. There are no new water features. There are no beehives, and there’s no roof garden terraces.”
POWELL REVEALS WHAT IT WOULD TAKE TO STEP DOWN FROM THE FED AS PRESSURE MOUNTS
Powell also told lawmakers that no one “wants to do a major renovation of a historic building during their term in office.”
“We decided to take it on because, honestly, when I was the administrative governor, before I became chair, I came to understand how badly the Eccles Building really needed a serious renovation,” Powell said, adding that the building is “not really safe” and not waterproof.
He also said that the cost overruns are due, in part, to unexpected construction challenges and the nation’s inflation rate.
Trump has previously threatened legal action over the renovations and mocked the project’s cost and design.
“They’re building a basement into the Potomac River. I could have told them. That’s very tough to do, and it doesn’t work, and it’s very expensive,” Trump said. “But they’re up to $4 billion, headed by this clown,” he added in November, referring to Powell.
Meanwhile, Warsh’s confirmation to lead the world’s most powerful central bank could be delayed by Republican opposition linked to the criminal probe of Powell.
Warsh but must first be confirmed by a simple majority in the Senate, a process that typically begins with a hearing and vote in the Senate Banking Committee.
Sen. Thom Tillis, R-N.C., said last week he will oppose the confirmation of any Federal Reserve nominee until the Trump administration concludes its investigation into Powell. Tillis’s resistance carries particular weight given his seat on the Senate Banking Committee.
With Tillis placing a hold on Warsh’s nomination, the only way to force it out of the Senate Banking Committee would be through a discharge vote on the Senate floor, a move that requires 60 votes and is unlikely in a deeply divided Senate, particularly amid tensions over the investigation into Powell.
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