The New York Times reported that federal prosecutors have opened an investigation into Federal Reserve Chair Jerome Powell.
The investigation into the Federal Reserve's plan to renew its headquarters in Washington comes, according to a report by The New York Times on Sunday evening.
The report, citing officials briefed on the matter, stated that the Office of the Attorney General for the District of Columbia has opened the investigation.
Prosecutors are examining whether Powell lied to Congress about the scope and total cost of the project. The investigation includes an analysis of Powell's public statements and spending records.
The investigation is likely to represent a new avenue of pressure from President Donald Trump's administration on Powell, who the president has repeatedly attacked for resisting his demands for a sharp reduction in interest rates.
Trump has also raised the possibility of fraud in the recent renewal of the Federal Reserve's headquarters—claims that Powell has denied.
The Federal Reserve reduced interest rates by a cumulative 75 basis points in 2025, significantly less than what Trump had demanded from the central bank. Powell cited caution regarding inflation and the impact of Trump's policies as reasons for the smaller cuts.
Trump is expected to accelerate the announcement of a replacement for Powell as head of the Federal Reserve, as Powell's term ends in May. Last week, Trump told The New York Times he has already decided who will be the next Federal Reserve chair and will announce his decision soon.
White House economic advisor Kevin Hassett and former Federal Reserve governor Kevin Warsh are seen as leading candidates for the Federal Reserve chair position. Both candidates support Trump's calls for lowering interest rates.
This development comes amid escalating geopolitical crises in the Middle East and Latin America. Gold has made a strong start, with the spot price reaching $4,577 per ounce and hitting a record high of $4,578 per ounce.
The forward price recorded $4,591 per ounce, up nearly 2%.
