Board

Fans are frustrated with LA28. City Council members are battling over billions of dollars and overdue contracts. But in front of the U.S. Olympic and Paralympic Committee board of directors, LA28 found support for the private organizing committee’s progress with a little more than two years remaining before the Games open in L.A.

Despite pushback from locals, LA28 leadership, including chief executive officer Reynold Hoover and chief executive officer responsible for revenue John Slusher, spoke to the USOPC on Wednesday about the ticket sale process, explained the superbloom-inspired look of the Games and celebrated the committee’s recent commercial success that surpassed more than $2 billion in sponsorship agreements.

“We were quite encouraged to hear from them,” USOPC chair Gene Sykes said during a conference call Wednesday after a board of directors meeting, “and quite confident in the direction of LA28 from an operational standpoint.”

The private group responsible for bringing the Games back to L.A. for the first time in four decades opened ticket sales this month after attracting a record number of interested fans. The first week of sales — reserved for locals in Southern California and Oklahoma City near competition venues — “significantly exceeded first-week sales for any previous Olympic Games,” LA28 said in a statement.

But many fans were shocked to see opening ceremony tickets topping $5,000. They complained about a shortage of options for the most in-demand sports and were surprised to see a 24% service fee. Global sales opened on April 9 and many of the problems, including website glitches and unavailable tickets, persisted.

The USOPC board discussed the fee with LA28, and recognized that it is “part of a framework that is a framework they accept,” Sykes said, “as opposed to challenging it or trying to make it something different.”

The fee is included in the listed price of the tickets, which start at $28. There will be 1 million tickets sold at $28 each, and nearly half of the Olympic tickets are under $200. More than 75% are under $400 and about 5% of tickets are more than $1,000.

“I know they’re thinking very, very seriously about how to manage the ticket activity so that it satisfies everybody,” Sykes said.

LA28 will have 14 million tickets available between the Olympics and Paralympics, which would break Paris 2024’s record of 12 million tickets sold. The current ticket drop, which is open to fans worldwide, ends April 19. LA28 expects to have a second drop this year, but has not released specific details about when.

Ticket headaches have added to a controversial run-up to the Games for LA28, which also faced backlash after chairman Casey Wasserman was mentioned in the Epstein files released in February. The LA28 executive committee backed Wasserman after a review with the assistance of outside counsel. Wasserman announced that month he would sell his talent agency but planned to continue working with LA28.

When asked Wednesday what the USOPC board believed Wasserman’s role with LA28 should be moving forward, Sykes said the organizations have had discussions and are monitoring the “impact on our community.” But it is ultimately the LA28 board’s decision to select its chair. Wasserman was appointed by former Mayor Eric Garcetti to lead the Olympic effort in 2014.

“Separate from the LA28 board … LA28’s leadership Reynold Hoover and John Slusher, but many other people among the hundreds of people who work for LA28 have continued to assemble a very strong team,” Sykes said, “and show measurable progress on all the fundamental things that they need to do to make the Games a very, very strong Games, and have a remarkable experience. We remain very confident that that progress is both evident and very solid and that [it] will involve the planning with partners, athlete engagement, public support and corporate interest, all of which remain very strong, and I think, very encouraging. The ongoing committee is executing effectively, and we’re very happy to work with them.”

WASHINGTON — Federal prosecutors made an unannounced visit this week to a construction site at Federal Reserve headquarters that is the focus of an investigation into a $2.5-billion renovation project, according to two people familiar with the visit.

Two prosecutors and an investigator from U.S. Atty. Jeanine Pirro’s office were turned away on Tuesday by a building contractor and referred to Fed attorneys, one of the people said. The two people familiar with the visit spoke on condition of anonymity because they weren’t authorized to publicly discuss an ongoing investigation.

The visit underscores that the Trump administration is not backing down from its investigation of the Fed and its chair, Jerome Powell, even though the probe has delayed the confirmation of a new chair nominated by President Trump. The investigation is focused on cost overruns and brief testimony about the project last summer by Powell. Trump confirmed in an interview that aired Wednesday on Fox Business that he wants to continue the probe.

Last month, during a closed-door hearing before a federal judge, a top deputy from Pirro’s office conceded that they hadn’t found any evidence of a crime in their investigation of the headquarters project.

Robert Hur, an attorney for the Federal Reserve board of governors, sent an email to Pirro’s prosecutors about their visit and their request for a “tour” to “check on progress” at the construction site. Hur’s email, which the Associated Press has viewed, noted that U.S. District Judge James Boasberg concluded that their interest in the Federal Reserve’s renovation project was “pretextual.”

“Should you wish to challenge that finding, the courts provide an avenue for you; it is not appropriate for you to try to circumvent it,” Hur wrote.

Republican Tillis is key vote

Sen. Thom Tillis, a North Carolina Republican who is a key member of the Senate Banking Committee, has vowed to vote against Kevin Warsh, Trump’s nominee to replace Powell as Fed chair, until the investigation is dropped. With the committee closely divided on partisan lines, Tillis’ opposition is enough to block Warsh.

The Banking panel said Tuesday that it will hold a hearing on Warsh’s nomination April 21. Powell’s term as Fed chair ends May 15, but Powell said last month he would remain as chair until a replacement is named.

Powell is serving a separate term as a member of the Fed’s governing board that lasts until January 2028. Chairs typically leave their posts as governor when their terms as chair end, but they can remain on the board if they choose.

Last month, Powell said, “I have no intention of leaving the Board until the investigation is well and truly over, with transparency and finality.” If he remains in his seat, even after Warsh is confirmed, it would deny Trump the oppotunity to fill a seat on the seven-member board.

Late Tuesday, Tillis posted a link on social media to the Wall Street Journal’s article on the visit below an image of the Three Stooges and wrote, “The U.S. Attorney’s Office for D.C. at the crime scene.”

Investigation centers on building renovations

The investigation by Pirro’s office centers on an appearance by Powell before the Senate Banking Committee last June, when he was asked about cost overruns on the Fed’s extensive building renovations. The most recent estimates from the Fed suggest the current estimated cost of $2.5 billion is about $600 million higher than a 2022 estimate of $1.9 billion.

“It is probably corrupt, but what it really is, is incompetent,” Trump said on Fox Business. “Don’t you think we have to find out what happened there?”

The president’s support for the investigation threatens a time frame set out by Sen. Tim Scott, a South Carolina Republican who chairs the Banking Committee. Scott said Tuesday on Fox Business that he believed the investigation would be “wrapped up in the next few weeks,” allowing Warsh to be confirmed soon after.

Threat to fire Powell

News of the unannounced visit by prosecutors comes as Trump has again threatened to fire Powell, if the Federal Reserve chair decides to stay on the central bank’s governing board after his term as chair expires next month.

“Well then I’ll have to fire him, OK?” Trump said when reminded that Powell has said he won’t leave the Fed while the Justice Department investigates a $2.5-billion renovation project at the bank. Powell has also said he will remain as chair of the Fed’s rate-setting committee until a replacement is confirmed by the Senate, following the precedent of previous chairs.

Trump has for months wanted to remove Powell as chair of the Fed, saying he has been too slow in orchestrating interest rate cuts that would give the U.S. economy a quick boost. Powell has said the investigation is a pretext to undermine the Fed’s independence to set rates.

Supreme Court weighing another Trump removal

Trump’s threat to fire Powell comes as the Supreme Court is weighing the president’s effort to remove another central bank governor, Lisa Cook. Lower courts have so far allowed Cook to remain in her job while her legal challenge to the firing continues. The Supreme Court also seemed likely to keep her on the Fed when the court heard arguments in January. A decision could come any time.

The issue in Cook’s case is whether allegations of mortgage fraud, which she has denied, is a sufficient reason to fire her or a mere pretext masking Trump’s desire to exert more control over U.S. interest rate policy.

The Supreme Court has allowed the firings of the heads of other governmental agencies at the president’s discretion, with no claim that they did anything wrong, while also signaling that it is approaching the independence of the nation’s central bank more cautiously, calling the Fed “a uniquely structured, quasi-private entity.”

Kunzelman and Rugaber write for the Associated Press. AP Writer Mark Sherman contributed to this report.