Prosecutors from U.S. Attorney Jeanine Pirro’s office attempted to enter the Federal Reserve’s headquarters on April 14, 2026, to inspect the site of an active criminal investigation into the bank’s ongoing renovations but were denied access, according to sources and court documents reviewed by CBS News.
The two prosecutors, accompanied by an investigator, arrived at the site unannounced and requested a tour to “check on progress,” but Federal Reserve staff refused entry and directed them to contact the Fed’s legal team. In a letter responding to the prosecutors, the Federal Reserve’s outside counsel, Robert Hur, noted the request was improper, referencing a recent court ruling that deemed the investigation a “pretext” to pressure Fed Chair Jerome Powell.
The probe, launched by the U.S. Attorney’s Office in Washington, D.C., in November 2025, centers on the $2.5 billion renovation project of the Federal Reserve headquarters. The investigation targets Powell’s June 2025 testimony before the Senate Banking Committee regarding alleged cost overruns in the renovation.
Powell disclosed in January that the Federal Reserve had received grand jury subpoenas related to the inquiry but argued the investigation was politically motivated, aimed at forcing him to lower interest rates in line with President Donald Trump’s preferences. The subpoenas were later quashed in March by Chief Judge James Boasberg, who found no evidence of criminal wrongdoing and described the subpoenas as harassment tactics.
The two prosecutors involved in the attempted visit, Carlton Davis and Steven Vandervelden, are known allies of Jeanine Pirro and were previously involved in an unsuccessful effort to indict six Democratic members of Congress. Their visit to the Federal Reserve’s renovation site was widely viewed as an unorthodox move in the ongoing investigation.
Federal Reserve spokesperson declined to comment on the incident. Pirro defended the probe, stating that cost overruns approaching 80% on a construction project warrant serious scrutiny, especially considering the Federal Reserve’s critical role in U.S. monetary policy.
The investigation has complicated President Trump’s attempts to replace Powell as Fed chair. Senator Thom Tillis, a member of the Senate Banking Committee, has indicated he will withhold support for Trump’s nominee, Kevin Warsh, until the investigation is resolved. Powell’s term as chair ends in May 2026, but he may remain on the Federal Reserve board through 2028.
Why it matters
The Federal Reserve’s independence is a cornerstone of U.S. monetary policy, and the criminal investigation—along with allegations of political interference—raises concerns about potential impacts on the Fed’s impartiality. The high-profile status of the probe and its links to President Trump’s administration have increased scrutiny of the investigation’s motives and conduct.
Background
Federal Reserve headquarters has been undergoing a multi-year renovation estimated to cost $2.5 billion, sparked investigations following reports of significant budget overruns. Chair Jerome Powell has faced political pressure, including public disputes with President Trump over interest rate decisions and Fed policy direction. The ongoing criminal inquiry reflects broader tensions between the Justice Department under U.S. Attorney Pirro and the Federal Reserve’s leadership.
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