Top central bankers back Powell amid DOJ probe and White House pressure
Global central bankers expressed full solidarity with Fed Chair Jerome Powell as DOJ subpoenas probe his testimony and renovation costs amid White House pressure escalation.
Overview
Nine national central bank heads, including ECB President Christine Lagarde and Bank of England Governor Andrew Bailey, said they 'stand in full solidarity' with Fed Chair Jerome Powell.
The Justice Department served grand-jury subpoenas seeking documents and testimony about Powell's June congressional comments and a roughly $2.5 billion Fed headquarters renovation.
Powell publicly denounced the move as 'unprecedented' and a 'pretext,' saying the investigation aims to pressure the Fed to lower rates and politicize monetary policy.
U.S. Attorney Jeanine Pirro said prosecutors used legal process after the Fed failed to respond to outreach about cost overruns, calling the effort 'not a threat.'
Lawmakers warned the probe could undermine Fed independence; some Republicans threatened to block Fed nominees, while officials warned investor confidence and bond markets could be rattled.
Analysis
Center-leaning sources frame the story as a defense of Fed independence, using evaluative language ('full solidarity'), selection of supportive authorities (former Fed chairs, international central bankers, sympathetic Republican senators), and prominent quoting of Powell's warning. Coverage emphasizes political motives behind the DOJ probe while downplaying the administration’s cost-overrun rationale.
Sources (95)
FAQ
The project renovates two historic 1930s buildings, the Marriner S. Eccles Building and the adjacent East Building, addressing asbestos, lead paint, outdated systems, and structural issues to consolidate operations and reduce long-term leasing costs.[1]
Costs rose due to discoveries of lead paint and asbestos, high water table complicating underground work, inflation in construction materials, and structural challenges in geologically complex areas.[1]
The DOJ issued grand jury subpoenas for documents and testimony on Powell's June 2025 congressional comments about the renovation, focusing on whether he was truthful about features like marble, elevators, water features, beehives, and roof gardens amid cost overruns.
Nine central bank heads, including ECB's Christine Lagarde and Bank of England's Andrew Bailey, expressed full solidarity with Fed Chair Jerome Powell against the DOJ probe and White House pressure.[provided story]
Completion is expected in fall 2027, with staff moving in by Q1 2028; it will consolidate operations, eliminate leased space costs, and modernize facilities for safety and efficiency.[1]
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