Prosecutors Denied Access to Federal Reserve Renovation Amid Investigation

Prosecutors from U.S. Attorney Jeanine Pirro’s office attempted an unannounced visit to the Federal Reserve’s headquarters renovation site in Washington, D.C., on Tuesday but were denied access, according to multiple sources and a letter reviewed by CBS News and NBC News. The renovation project, which has cost approximately $2.5 billion, is under a months-long criminal investigation led by Pirro’s office.

The three officials—two prosecutors and an investigator—arrived at the Fed’s construction site and requested a “tour” and to “check on progress,” according to Robert Hur, the Fed’s outside legal counsel. Hur responded in an email that the visit was inappropriate given a recent court ruling and directed the prosecutors to communicate through legal channels. “As you know, Chief Judge Boasberg has concluded that your interest in the Federal Reserve’s renovation project was pretextual,” Hur wrote, referencing a March ruling by U.S. District Judge James Boasberg that quashed subpoenas issued to Fed Chair Jerome Powell. The judge found the subpoenas were likely intended to pressure Powell to lower interest rates or resign, stating, “The Government has produced essentially zero evidence to suspect Chair Powell of a crime.”

Pirro’s office has unsuccessfully sought to revive the subpoenas, with a second attempt denied on April 3. The prosecutors have not yet appealed to a higher court. Hur’s letter emphasized that the courts are the proper venue for challenging the ruling and requested that the prosecutors refrain from contacting the Fed outside the presence of counsel.

In a statement, Pirro defended the visit, saying, “Any construction project that has cost overruns of almost 80% over the original construction budget deserves some serious review. And these people are in charge of monetary policy in the United States?” The Federal Reserve declined to comment on the incident.

The investigation centers on Powell’s testimony before the Senate Banking Committee in June 2025 regarding the costly renovation project. Powell revealed in January that the Fed had received grand jury subpoenas as part of the probe, which he described as an attempt to intimidate the central bank for setting interest rates independently of presidential preferences. The investigation has not resulted in any criminal charges.

The probe and the recent visit have complicated the confirmation process for Kevin Warsh, President Donald Trump’s nominee to succeed Powell as Fed chair. Republican Senator Thom Tillis of North Carolina has stated he will not advance Warsh’s nomination until the Justice Department ends its investigation. Tillis criticized the investigation as lacking sufficient evidence and suggested it was politically motivated. “I don’t want to reward bad behavior,” he said. “Recognize there’s not sufficient evidence to continue a criminal investigation, end it, and I will vote for Kevin Warsh.”

The visit coincided with the Senate Banking Committee’s announcement of Warsh’s confirmation hearing date. Committee Chair Senator Tim Scott expressed confidence that the investigation would conclude soon, stating on Fox Business Network, “All evidence I’ve seen, all fingers point in the direction of having this wrapped up in the next few weeks.” Despite this, Warsh’s confirmation vote remained blocked as of Tuesday night.

Last summer, former President Trump personally toured the Fed’s renovation project with Powell, highlighting disagreements over the project’s cost overruns. The ongoing investigation and political tensions continue to affect the Federal Reserve’s leadership transition and the broader monetary policy landscape.