DOJ Prosecutors Turned Away from Federal Reserve HQ as Trump Threatens to Fire Powell

Federal Reserve officials blocked an unannounced visit by Justice Department prosecutors and an investigator on April 15, 2026, at the central bank's headquarters. The visit, conducted by staff from U.S. Attorney Jeanine Pirro's office, was an attempt to tour a $2.5 billion renovation project. The encounter occurs as President Donald Trump has publicly threatened to fire Fed Chair Jerome Powell if he refuses to leave the governing board after his term expires in May.

The Details

Two prosecutors, Carlton Davis and Steven Vandervelden, along with investigator Matthew Fox-Moles, were turned away by a building contractor at the Fed construction site and referred to the central bank's legal team. Robert Hur, an attorney for the Federal Reserve Board of Governors, subsequently informed the prosecutors via email that their interest in the renovation project had been deemed 'pretextual' by Chief Judge James Boasberg.

Judge Boasberg's ruling came in March 2026, when he quashed two grand jury subpoenas issued by Pirro's office. The judge stated there was 'abundant evidence' that the subpoenas were intended to harass and pressure Powell into yielding to the President or resigning. Boasberg further noted that the government had presented no evidence of fraud. During a closed-door hearing, a top deputy from Pirro's office conceded that no evidence of a crime had been found in the investigation of the headquarters renovation.

The renovation project has become a focal point of contention due to significant cost overruns. Current estimates place the cost at $2.5 billion, an 80% increase over the $1.9 billion estimate from 2022. U.S. Attorney Jeanine Pirro defended the probe, stating that any project with such substantial overruns deserves serious review, questioning the competence of those in charge of U.S. monetary policy.

Despite the judicial rebukes, the investigation formally remains open. Pirro has until approximately May 4, 2026, to appeal Judge Boasberg's ruling, although the judge had previously declined a request to appeal on April 3. Legal experts suggest that without new evidence, the investigation is unlikely to survive further judicial scrutiny.

Parallel to the DOJ probe, the Supreme Court is considering an effort by the Trump administration to remove Fed Governor Lisa Cook. Lower courts have allowed Cook to remain in her position, and the Supreme Court has signaled a similar inclination, describing the Federal Reserve as a 'uniquely structured, quasi-private entity.'

Context

The conflict between President Trump and Jerome Powell has centered on the independence of the Federal Reserve and the timing of interest rate cuts. Trump has argued that Powell has been too slow to lower rates to stimulate the economy. The criminal investigation into Powell was opened in November 2025, focusing on Powell's June 2025 testimony before the Senate Banking Committee regarding the renovation cost overruns.

In January 2026, Powell revealed that the DOJ had issued grand jury subpoenas, which he claimed threatened a criminal indictment related to his testimony. Powell has maintained that the investigation is a pretext to undermine the Fed's independence. This tension was physically manifested in the summer of 2025, when Trump and Powell were filmed arguing about the renovation costs while touring the site in hard hats.

Legal analysts, including Senator Josh Hawley (R-MO), have noted that firing Powell would likely require a showing of 'cause'—meaning specific misconduct—which may be a difficult legal threshold to meet given the current lack of evidence of criminal activity.

What's Next

The immediate focus shifts to May 15, 2026, when Powell's term as Fed chair expires. While he is slated to leave the chair position, he holds a separate term as a member of the governing board until January 2028. Powell has stated he will not leave the board until the DOJ investigation is resolved with transparency and finality. President Trump has responded to this by stating, 'Well then I'll have to fire him, OK?'

Concurrently, the Senate Banking Committee is scheduled to hold a hearing on April 21, 2026, for Kevin Warsh, Trump's nominee to replace Powell. However, Senator Thom Tillis (R-NC) has vowed to block Warsh's confirmation until the DOJ investigation into Powell is dropped, describing the probe as 'bogus, ill-timed, and ill-informed.'

Given the narrow partisan division of the committee, Tillis's opposition could effectively block Warsh's approval, leaving the leadership of the Federal Reserve in a state of precarious transition as the May deadline approaches.