A criminal investigation of the Federal Reserve launched by the Department of Justice zeroed in on renovation of the Federal Reserve's headquarters.

The Justice Department’s move to investigate Federal Reserve Chair Jerome Powell is shaping up to be one of the Trump administration’s most unpopular actions yet among Capitol Hill Republicans.

“People inside the Fed will view this development as really alarming and see it as a statement that Trump absolutely intends to gain control over monetary policy,” Janet Yellen, a former Fed chair and...