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Federal prosecutors in Washington have opened a criminal investigation into U.S. Federal Reserve Chair Jerome Powell, examining whether he misled Congress about the scope and cost of renovations to the central bank’s headquarters, according to a report by The New York Times.

The inquiry is being handled by the U.S. Attorney’s Office for the District of Columbia and focuses on Powell’s public statements regarding the renovation project, as well as internal spending records tied to the overhaul of the Federal Reserve’s Washington complex. The investigation was approved in November by U.S. Attorney Jeanine Pirro, the report said, citing officials briefed on the matter.

Prosecutors are assessing whether Powell accurately described the nature and scale of the renovation when testifying before lawmakers. The issue has attracted heightened scrutiny amid broader debates over transparency, accountability, and governance at the central bank.

Neither the Department of Justice nor the Federal Reserve immediately commented on the reported investigation. Powell has previously defended the renovation, saying the project was necessary to modernize aging facilities and maintain operational safety and efficiency.

The inquiry comes at a sensitive time for the Federal Reserve, as policymakers continue to navigate slowing inflation, shifts in the labor market, and financial stability risks. Developments surrounding the Fed’s leadership are being closely monitored by investors, given the institution’s central role in shaping U.S. monetary policy.

The investigation remains in its early stages, and no charges have been filed. It is not yet clear whether prosecutors will pursue further action following their review.