Overview
- The U.S. Attorney’s Office in Washington is investigating whether Powell misled Congress about the renovation’s scope and costs, a probe reported to have been approved in November by U.S. Attorney Jeanine Pirro.
- Powell released a video denying wrongdoing, called the action unprecedented, and hired Williams & Connolly as outside counsel.
- Former Fed chairs and a group of 11 foreign central banks, joined by the BIS, warned that the investigation threatens central‑bank independence.
- Gold and silver surged to record or near‑record levels as investors sought havens, while U.S. equities dipped and the dollar weakened on the headlines.
- President Trump said he was unaware of the probe but criticized Powell and the project’s cost, and Senator Thom Tillis signaled he will oppose Fed confirmations until the legal issue is resolved.