The popular U.S. Attorney for the District of Columbia, Jeanine Ferris Pirro, has launched a criminal investigation against the Fed Chair, Jerome Powell. The probe intensifies the scrutiny in the case of the central bank’s leadership. As per a famous journalist, Nick Sortor, the probe attempts to investigate whether Powell delivered a misleading or inaccurate statement to Congress concerning the renovation project for the Federal Reserve headquarters. The development has reportedly sent a shockwave across the crypto markets.
Jerome Powell Faces Criminal Investigation over Expenditure for Federal Reserve Headquarters Renovation
As the reports point out, the U.S. Attorney’s Office for the District of Columbia has initiated a criminal investigation into Jerome Powell, the Fed chairman. This move is crucial as it takes place at a point when the credibility of monetary policy is crucial. The case also places Jerome Powell under an immense political and legal spotlight.
The investigation revolves around the statements that Powell gave to a Senate committee regarding the scope and cost of the renovations of the Fed buildings. Initially, the project had an estimated cost of $2.5B, but it subsequently ballooned by nearly $700M. This has raised apprehensions among policymakers regarding transparency and oversight.
Growing Legal Pressure Triggers Jail Speculation as Scrutiny Intensifies
As per the critics, Fed chairman, Jerome Powell has likely downplayed the expenditure during congressional meetings. As a result of this, the latest criminal inquiry is going on. In Powell’s video statement, he has described this inquiry as “unprecedented.”
According to Nick Sortor, the investigation might lead to a jail sentence for Jerome Powell. Additionally, the lawmakers have warned about the potentially dangerous consequences of this case. At the moment, the Fed, Jerome Powell, and the wider financial sector are under massive scrutiny amid unfolding legal process.