Fed Chair Powell Faces Investigation Over False Testimony, Renovation Costs Surge to $750M
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Investigation Launched: Federal prosecutors have initiated an investigation into Fed Chair Jerome Powell, focusing on whether he provided false testimony to Congress regarding the renovation of the Fed's historic headquarters, which could significantly impact his legal standing if proven true.
- Budget Overruns: The renovation project for the Eccles Building has seen its budget balloon from an initial $450 million to approximately $750 million, highlighting severe management issues that may prompt Congress to further scrutinize the Fed's transparency and expenditure controls.
- Market Reaction: Financial markets are showing sensitivity to the uncertainty surrounding Fed leadership during the investigation, and while analysts generally expect limited immediate impacts on monetary policy, prolonged uncertainty could affect confidence in bond and currency markets.
- Historical Context: The investigation into Powell is exceptionally rare in Fed history, with the last comparable situation occurring in the 1970s, underscoring ongoing congressional interest in the operations of the central bank and potentially leading to increased oversight in the future.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
