Powell Testimony in Doubt Amid DOJ Probe
Senate Banking Chair Tim Scott indicated that Fed Chair Powell's testimony is uncertain due to ongoing legal issues.
The DOJ is investigating whether Powell misled Congress in June 2025 about the Federal Reserve's headquarters renovation budget, which has ballooned to over $2.5 billion. The probe centers on allegations that Powell lied about luxury features included in the project, such as VIP dining rooms and rooftop beehives. Powell has characterized the investigation as a "pretext" to pressure the Fed to lower interest rates, a claim the White House denies. Tim Scott, as Senate Banking Committee Chair, questioned Powell about the renovations during the June hearing. Scott stated that while Powell may have made "a gross error in judgment" and was "not prepared" for the hearing, he doesn't believe Powell committed a crime. Despite this, the uncertainty surrounding Powell's testimony persists due to the ongoing legal issues. The situation is further complicated by reports of a replaced lead prosecutor in the probe. This raises questions about the direction and potential political motivations behind the case. Powell's term as Fed Chair ends in May 2026, adding another layer of uncertainty to the situation. Powell declined to testify before the Senate Banking Committee at a previously scheduled hearing on February 11, with Scott stating that Powell is "more concerned" about the DOJ proceedings. Scott mentioned he advised Powell to testify before the committee again.
