Justice Department Finds No Evidence of Crime in Federal Reserve Renovation Project

Federal prosecutor admits lack of evidence during closed-door hearing, as judge quashes subpoenas against Fed Chair Powell.

Mar. 25, 2026 at 3:54am

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The Justice Department's investigation into a $2.5 billion renovation project at the Federal Reserve found no evidence of criminal wrongdoing, a federal prosecutor privately conceded during a closed-door hearing. The admission came as a judge quashed government subpoenas issued to the Federal Reserve, dealing a severe blow to the investigation led by U.S. Attorney Jeanine Pirro's office.

Why it matters

The failed investigation raises questions about the motives behind the government's scrutiny of the Federal Reserve's renovation project and Fed Chair Jerome Powell. The judge presiding over the case accused prosecutors of targeting a "disfavored official" and suggested the subpoenas were part of a "pressure campaign" to influence the Fed's monetary policy decisions.

The details

During a March 3 closed-door hearing, U.S. District Judge James Boasberg pressed Assistant U.S. Attorney Andrew Massucco to specify any evidence of fraud or criminal misconduct related to Powell's testimony about the renovation project or the construction work itself. Massucco acknowledged that the government "do not know at this time" of any false statements made by Powell or evidence of fraud or criminal wrongdoing.

  • The closed-door hearing took place on March 3, 2026.
  • On March 11, 2026, Judge Boasberg quashed the government's subpoenas against the Federal Reserve.

The players

Jerome Powell

Chair of the Federal Reserve.

Jeanine Pirro

U.S. Attorney who led the investigation into the Federal Reserve renovation project.

Andrew Massucco

Assistant U.S. Attorney and chief of the criminal division for Pirro's Washington office.

James Boasberg

Chief U.S. District Judge who presided over the closed-door hearing and quashed the government's subpoenas.

Robert Hur

Attorney who represented the Federal Reserve board of governors at the March 3 hearing.

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What they’re saying

“So what false statements did (Powell) make before Congress?”

— James Boasberg, Chief U.S. District Judge

“Well, we don't know is my first answer. However, there are certain areas that he addressed that caused concern.”

— Andrew Massucco, Assistant U.S. Attorney

“And then what evidence is there of fraud or criminal misconduct in relation to the renovations?”

— James Boasberg, Chief U.S. District Judge

“Again, we do not know at this time. However, there are 1.2 billion reasons for us to look into it.”

— Andrew Massucco, Assistant U.S. Attorney

“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.”

— James Boasberg, Chief U.S. District Judge

What’s next

The Justice Department is expected to appeal Judge Boasberg's decision to quash the subpoenas against the Federal Reserve.

The takeaway

This failed investigation highlights the importance of the Federal Reserve's independence and the need for the government to have strong evidence before targeting public officials, especially when the motives appear to be politically driven.