Judge Dismisses Subpoenas in Powell Renovation Probe

A federal prosecutor in Washington, D.C., acknowledged during a court hearing this month that investigators had found no evidence of criminal wrongdoing by Federal Reserve Chair Jerome Powell in connection with a 2.5 billion renovation project at the central bank's headquarters, leading a judge to dismiss related subpoenas.

The admission came on March 3 during a sealed hearing before U.S. District Judge James Boasberg. Prosecutor George A. MassuccoLaTaif, from the office of U.S. Attorney Jeannine Pirro, responded to Boasberg's questions about potential fraud or misconduct tied to the renovations. "We do not know at this time," MassuccoLaTaif said, according to a transcript unsealed later. He added, "However, there are 1.2 billion reasons for us to look into it," referring to the project's cost overruns.

Boasberg pressed further on any discrepancies in Powell's June 2025 testimony before Congress, where the Fed chair had addressed the renovation costs. MassuccoLaTaif replied that prosecutors did not yet know of any false statements but noted areas of concern. He argued that the overruns warranted scrutiny, stating, "1.2 billion, that's the GDP of some smaller countries, yet we...