Trump’s economic adviser expects there is ‘nothing to see’ as justice department investigates Fed

The Guardian - World NewsCenter-LeftEN 2 min read 100% complete by Shrai Popat in WashingtonJanuary 16, 2026 at 04:53 PM

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The Justice Department is investigating Federal Reserve Chair Jerome Powell regarding potential false testimony to Congress about the scope of renovations to the Fed's headquarters. The investigation stems from accusations that the Fed mishandled the project, with Trump allies alleging a lack of transparency. Despite the investigation and Trump's past threats of legal action, economic advisor Kevin Hassett anticipates "nothing to see here," suggesting Powell is truthful about cost overruns being related to issues like asbestos. Hassett stated he wished the Fed had been more transparent. The investigation has drawn criticism, with former Fed chairs condemning it and international central banks expressing solidarity with Powell, warning of negative consequences for central bank independence.

Key Entities & Roles

Key Player Opposition Context

National Economic Council 40% Fox Business Network 40% Jeanine Pirro 50% Washington, D.C. 50% United States ×270% Kevin Hassett ×580% United States Department of Justice ×380% Federal Reserve ×890% Donald Trump ×590% Jerome Powell ×790%

Keywords

federal reserve 100% jerome powell 90% justice department investigation 80% trump administration 70% central bank independence 60% kevin hassett 50% interest rate cuts 50% congressional testimony 40% transparency 40%