Federal Reserve officials grew alarmed after a Trump Justice Department prosecutor sent unusually casual emails seeking an off-the-record chat about costly renovations at the central bank’s headquarters, prompting fears the inquiry carried criminal implications. According to multiple sources, the outreach came from a political appointee in U.S. Attorney Jeanine Pirro’s office, leading Fed Chair Jerome Powell to hire outside counsel and decline engagement. The standoff has intensified tensions between the Fed and the White House, with officials wary the probe is less about construction costs than pressure on an independent central bank Trump has repeatedly attacked.
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