• Investigation centers on multi-billion dollar Fed headquarters renovation project
• Building costs jumped from $1.9 billion estimate to $2.5 billion
• Shapiro warns DOJ should not be weaponized for political purposes

WASHINGTON, DC (TDR) — Conservative commentator Ben Shapiro expressed skepticism Monday over the Justice Department’s criminal investigation into Federal Reserve Chair Jerome Powell, saying he needs to see solid evidence of wrongdoing before endorsing the probe.

The Daily Wire host told his podcast listeners the investigation focuses on Powell’s oversight of the Fed building renovation, a project whose budget has climbed substantially since planning began. While Shapiro acknowledged cost overruns deserve scrutiny, he questioned whether they constitute criminal activity.

“Here is my question — obviously Powell could have said things that were accurate at the time and later became inaccurate because the facts on the ground change — is there evidence Powell was stealing money or embezzling?” Shapiro asked during his Monday broadcast.

Renovation Budget Jumped $600 Million

Freedom-Loving Beachwear by Red Beach Nation - Save 10% With Code RVM10

The Justice Department investigation centers on whether Powell accurately characterized the scope and cost of renovating the central bank’s Washington headquarters during Senate testimony last June.

The project to overhaul the historic Marriner S. Eccles Building and adjacent Federal Reserve East Building has grown from an initial $1.9 billion estimate in 2021 to approximately $2.5 billion today, according to Fed documents. The renovation involves removing asbestos and lead, replacing century-old electrical and plumbing systems, and modernizing infrastructure in buildings dating to the 1930s.

President Donald Trump claimed in recent statements the costs exceeded $4 billion, though Powell maintains the approved budget remains at $2.5 billion. Trump told NBC News Sunday he knew nothing about the investigation but criticized Powell’s management.

“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said.

Fed Cites Inflation and Unexpected Challenges

CLICK HERE TO READ MORE FROM THE THE DUPREE REPORT

Federal Reserve officials attributed the budget increases to pandemic-era inflation, soaring construction material costs, labor shortages in skilled trades, and unforeseen complications including more extensive asbestos than anticipated and water-table issues from Washington’s swampy soil.

The buildings have not undergone comprehensive renovation since their construction nearly a century ago, Fed documents state. The central bank noted that costs for structural steel and other materials spiked dramatically in 2021 and 2022 as supply chains tightened.

“The project is large in scope because it involves the renovation of two historic buildings on the National Mall that were first constructed in the 1930s.”

The renovation also requires specialized processes to match original marble facades and meet strict historic preservation requirements, which Trump appointees to the Commission of Fine Arts mandated include expensive Georgia marble to align with federal neoclassical building standards.

Shapiro Warns Against Politicizing DOJ

The pro-Trump commentator cautioned against using the Justice Department as a political weapon, regardless of the target.

“This is bad policy, you should not be targeting people based on specious investigations — if it turns out it’s specious,” Shapiro said. “The DOJ should not be used for political purposes whether you are targeting Donald J Trump and your name is Joseph R Biden or whether you are targeting Jerome Powell and your name is president Donald J Trump.”

Shapiro acknowledged he did not know the “full case” against Powell and would wait for more details, but expressed concern that the investigation might be driven by disagreements over monetary policy rather than legitimate oversight questions.

“If it turns out that what they’re upset at him about has little to do with the actual reno of the Federal Reserve and a lot to do with his policy with regard to interest rates because Trump wants to keep cutting those interest rates — again, I don’t believe that the interest rates need to be cut, actually,” Shapiro added.

Powell Links Probe to Interest Rate Pressure

Powell confirmed Sunday that the Department of Justice served the Fed with grand jury subpoenas Friday, threatening possible criminal indictment. In a video statement, the Fed chair characterized the move as part of broader administration pressure to influence monetary policy.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.

The Fed chair has resisted Trump’s repeated demands to cut interest rates more aggressively, maintaining the benchmark rate between 3.50 and 3.75 percent following three quarter-point reductions. Trump has called Powell a “numbskull,” “a dumb guy” and “Trump Hater” over his monetary policy decisions.

Bipartisan Senate Pushback Emerges

Several Republican senators condemned the investigation, with Sen. Thom Tillis (R-NC) vowing to oppose all Trump nominees to the Federal Reserve until the matter is resolved.

“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” Tillis stated.

Sen. Lisa Murkowski (R-AK) backed Tillis’ position Monday after speaking with Powell. “After speaking with Chair Powell this morning, it’s clear the administration’s investigation is nothing more than an attempt at coercion,” she said.

Senate Minority Leader Chuck Schumer (D-NY) called the investigation “the kind of bullying that we’ve all come to expect from Donald Trump and his cronies.”

Former Fed chairs Ben Bernanke, Janet Yellen, and Alan Greenspan issued a joint statement defending central bank independence, joined by former Treasury Secretaries Henry Paulson and Robert Rubin.

Not Taxpayer Funded

Unlike most federal agencies, the Federal Reserve is self-financing and does not rely on taxpayer dollars. The central bank funds operations through income from government securities holdings, fees charged to banks, and other revenue sources, with excess profits returned to the U.S. Treasury.

Will Ben Shapiro’s measured response resonate with other conservatives, or will the investigation deepen partisan divisions over Federal Reserve independence?

Freedom-Loving Beachwear by Red Beach Nation - Save 10% With Code RVM10