India, Jan. 12 -- Federal prosecutors have opened a criminal investigation into the Federal Reserve's $2.5 billion renovation of its Washington, DC, headquarters. In a statement shared by the Federal Reserve Board, Federal Reserve Chair Jerome Powell called the probe "pretext" resulting from his ongoing struggle with the administration over interest rates. He added that it was a consequence of broader "threats and ongoing pressure" by the administration.

Donald Trump and his allies have repeatedly slammed Powell in the past over interest rates. In the second half of last year, the Fed lowered rates three times in a row, according to CNN. However, officials recently said that they are unlikely to lower rates again for a while.

The contro...