Powell: Trump launches criminal probe of Fed

Budget overruns on renovations targeted

- GLENN THRUSH COLBY SMITH

The US attorney's office in the District of Columbia has opened a criminal investigation into Jerome H. Powell, the Federal Reserve chair, over the central bank's renovation of its Washington headquarters and whether Powell lied to Congress about the scope of the project, according to officials briefed on the situation.

The inquiry, which includes an analysis of Powell's public statements and an examination of spending records, was approved in November by Jeanine Pirro, a longtime ally of President Donald Trump who was appointed to run the office last year, the officials said.

The investigation represents the opening of a major new legal front against Mr Powell, whom Trump has continually attacked for resisting his demands to slash interest rates significantly. The president has threatened to fire the Fed chair — even though he nominated Mr Powell for the position in 2017 — and raised the prospect of a lawsuit against him related to the $2.5 billion renovation, citing “incompetence.”

Trump told The New York Times in an interview last week that he had decided on who he wants to replace Mr Powell as Fed chair. He is expected to soon announce his decision. Kevin Hassett, Trump's top economic adviser, is a front-runner for the top job. While Mr Powell’s term as chair ends in May, his term as a governor runs through January 2028.

Mr Powell has not disclosed whether he plans to stay on at the central bank beyond this year.