New Delhi, Jan. 13 -- Federal prosecutors probe Jerome Powell over congressional testimony on Fed's $2.5B renovation, sparking historic political tension and record gold prices.

WASHINGTON - Federal Reserve Chair Jerome H. Powell is facing an unprecedented criminal investigation by federal prosecutors in Washington, D.C., thrusting the central bank into a political maelstrom and rattling global financial markets. The probe, which centers on Powell's testimony to Congress regarding the Fed's $2.5 billion renovation project at its Washington headquarters, has triggered a historic debate over central bank independence and the politicization of monetary policy.

According to multiple reports, the Department of Justice has issued grand jury s...