A transcript of a closed hearing reveals that the Justice Department's investigation into a $2.5 billion Federal Reserve renovation project found no evidence of criminal activity, according to statements made by a federal prosecutor. The investigation, which included scrutiny of Fed Chair Jerome Powell, faced skepticism from the judge regarding the justification for subpoenas and the lack of evidence of fraud or misconduct.
Federal Reserve Chair Jerome Powell speaks during a news conference Wednesday, March 18, 2026, in Washington. WASHINGTON — The Justice Department ’s investigation of a $2.5 billion renovation project at the Federal Reserve didn’t find any evidence of a crime, a federal prosecutor privately conceded under questioning by a skeptical judge earlier this month, according to a transcript of the sealed hearing.
Trump administration’s $1B deal to stop offshore wind shows an evolution in its anti-wind strategyMinnesota sues Trump administration over shootings, including deaths of Alex Pretti and Renee Good That admission by Assistant U.S. Attorney Andrew Massucco came during a March 3 hearing that was closed to the public, the transcript shows. Eight days later, Chief Judge James BoasbergIn his March 11 ruling, Boasberg said the government had produced “essentially zero evidence” to suspect Fed Chair Jerome Powell of a crime. The judge, who was nominated to the bench by Democratic President Barack Obama, also described prosecutors’ justification for the subpoenas as “thin and unsubstantiated.” During the earlier hearing, Boasberg asked the prosecutor from U.S. Attorney Jeanine Pirro’s office to specify any evidence of fraud or criminal misconduct related to Powell’s testimony about the renovation project or the construction work itself. “So what false statements did make before Congress?” the judge asked Massucco, according to the transcript. “Well, we don’t know is my first answer,” replied Massucco, chief of the criminal division for Pirro’s Washington office. “However, there are certain areas that he addressed that caused concern.” “Okay,” the judge continued. “And then what evidence is there of fraud or criminal misconduct in relation to the renovations?” “Again, we do not know at this time. However, there are 1.2 billion reasons for us to look into it,” Massucco said, referring to the amount of the project’s cost overruns., President Donald Trump’s pick to replace Powell when his term ends May 15. Powell can remain as chair past that date if no replacement has been approved. “A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning,” the judge wrote. Massucco said during the sealed hearing that there is no evidence that prosecutors’ motive for the grand jury subpoenas “is anything other than trying to find the truth of the matter.”Robert Hur, an attorney who represented the Federal Reserve board of governors at the March 3 hearing, said the subpoenas are part of a pressure campaign to support Trump’s push for lower interest rates. “He clearly has very strong political motives to try to get lower interest rates, but because of the safeguards that have been erected by Congress around the Federal Reserve’s independence when it comes to setting monetary policy, he can’t get it,” Hur told the judge. Pirro, a former Fox News host who was Trump’s pick to lead the nation’s largest U.S. Attorney’s office, derided Boasberg as an “activist judge” and claimed he had “neutered the grand jury’s ability to investigate crime.” She vowed to appeal his decision.A Fed spokesperson declined to comment Tuesday. The investigation by Pirro’s office centered on brief testimony last June by Powell before the Senate Banking Committee, when he was asked about cost overruns on the Fed’s extensive building renovations. The most recent estimates from the Fed suggest the current estimated cost of $2.5 billion is about $600 million higher than a 2022 estimate of $1.9 billion. In his ruling, Boasberg said the Justice Department rejected his offer to let the government submit further evidence against Powell directly to him, so that they wouldn’t have to tip their hand to the Fed or Powell. “The Court is thus left with no credible reason to think that the Government is investigating suspicious facts as opposed to targeting a disfavored official,” the judge wrote.4 women hospitalized after stabbing at DTLA restaurantLA street takeover crowd includes people climbing on top of trapped Metro bus210 Freeway section closed for hours after person jumps from freeway in IrwindaleWhat to know about the planned Saturday, March 28 ‘No Kings’ protests in Southern California
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Justice Department Finds No Evidence of Crime in Federal Reserve Renovation ProbeA Justice Department investigation into a $2.5 billion renovation project at the Federal Reserve found no evidence of criminal activity, according to a transcript of a closed hearing. The prosecutor admitted under questioning from a judge that they lacked specific evidence of fraud or misconduct by Fed Chair Jerome Powell, despite concerns about cost overruns.
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Justice Department Finds No Evidence of Crime in Federal Reserve Renovation ProbeA Justice Department investigation into a $2.5 billion renovation project at the Federal Reserve found no evidence of a crime, according to a transcript of a sealed hearing. The prosecutor admitted this under questioning from a skeptical judge, who also criticized the justification for subpoenas related to the investigation. The judge questioned the motives behind the investigation, suggesting it was politically motivated.
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Justice Department found no evidence of a crime in Federal Reserve renovation project, prosecutor admitsThe Justice Department's investigation of a $2.5 billion renovation project at the Federal Reserve found no evidence of a crime, a federal prosecutor privately conceded under questioning by a judge.
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