Prosecutors Denied Access to Fed Renovation Site

Federal prosecutors from the U.S. Attorney's Office in Washington attempted an unannounced inspection of a construction site at Federal Reserve headquarters on Tuesday, but were denied access as part of an ongoing probe into the central bank's $2.5 billion renovation project.

The visit involved two prosecutors and an investigator from U.S. Attorney Jeanine Pirro's office, who arrived at the site in Washington, D.C., without prior notice. A building contractor turned them away, citing protocols, and directed them to consult Federal Reserve attorneys, according to two people familiar with the matter who spoke on condition of anonymity because they were not authorized to discuss the investigation publicly. The episode highlights escalating tensions between the Justice Department and the Fed amid scrutiny of the renovation's costs and scope.

The investigation, which began last fall, examines potential irregularities in the project to update two 1930s-era office buildings. Officials have pointed to significant cost overruns, estimated at nearly 80 percent above the original budget, including features such as premium materials and amenities that drew criticism from lawmakers and...