Prosecutors turned away at Fed renovation site as Trump presses to fire Powell

Federal prosecutors showed up unannounced this week at the Federal Reserve’s headquarters construction site, seeking access to the $2.5 billion renovation project under investigation. They were turned away by contractors and directed to Fed attorneys. The visit underscores the Trump administration’s continued pursuit of an inquiry that has already been deemed pretextual by a federal judge.

The investigation, led by U.S. Attorney Jeanine Pirro’s office, focuses on cost overruns in the Fed’s building upgrades—now estimated at $2.5 billion, $600 million more than the 2022 projection of $1.9 billion. Yet last month, a senior deputy in Pirro’s office acknowledged in a closed-door hearing that no evidence of criminal wrongdoing had been uncovered. U.S. District Judge James Boasberg concluded the probe was not genuinely about the renovation. Robert Hur, counsel for the Fed’s board, told prosecutors they cannot bypass that finding by showing up unannounced at a construction site. “Should you wish to challenge that finding, the courts provide an avenue for you; it is not appropriate for you to try to circumvent it,” Hur wrote.

President Trump confirmed he intends to keep the investigation alive and reiterated his threat to fire Fed Chair Jerome Powell if Powell remains on the central bank’s board after his term as chair ends next month. Powell has said he will stay on as chair of the Fed’s rate-setting committee until a successor is confirmed, following historical precedent. His term as a Fed governor expires May 15, but his seat on the board lasts until January 2028. Trump has long criticized Powell for not cutting interest rates quickly enough to stimulate the economy, framing the renovation inquiry as a justification for removal. Powell, in turn, has argued the investigation is a cover to erode the Fed’s independence in setting monetary policy.

The probe has already had tangible consequences: Sen. Thom Tillis, a Republican on the Senate Banking Committee, has pledged to block Trump’s nominee to replace Powell, Kevin Warsh, until the investigation is dropped. With the committee narrowly divided, Tillis’s stance is enough to stall confirmation. The panel has scheduled a hearing on Warsh’s nomination for April 21.

Meanwhile, the Supreme Court is weighing a related challenge involving Fed Governor Lisa Cook, whom Trump sought to remove over disputed mortgage fraud allegations. Lower courts have allowed her to remain in office during litigation. In January, the Supreme Court appeared skeptical of unfettered presidential power to remove Fed officials, noting the central bank is a 'uniquely structured, quasi-private entity.' A decision could redefine the boundaries of political influence over monetary policy. The court has permitted removals of other agency heads at presidential discretion but has treated the Fed differently—so far.