The Justice Department has concluded its inquiry into cost overruns related to renovations at the Federal Reserve during Jerome Powell’s tenure as chairman, according to U.S. Attorney Jeanine Pirro. Pirro has now requested the Federal Reserve’s Inspector General to examine the building costs. In a social media post, Pirro emphasized the Inspector General’s role in ensuring accountability to American taxpayers and expressed confidence in obtaining a comprehensive report promptly to address lingering inquiries that led to the issuance of subpoenas.
While stating the possibility of restarting a criminal investigation if necessary, Pirro mentioned a recent federal judge’s decision to block subpoenas directed at the Fed’s board of governors. The judge found the subpoenas were intended to pressure Powell into complying with President Donald Trump’s demands rather than for legitimate investigative purposes. Powell’s term as chair is scheduled to conclude on May 15.
The investigation led by Pirro has influenced Powell’s stance on retaining a Fed governor position until 2028, which overlaps with the final year of Trump’s presidency. Typically, Federal Reserve chiefs vacate their positions when their leadership terms end. The Trump administration’s actions, including the criminal investigation, have raised concerns about potential delays in confirming Kevin Warsh as Powell’s successor.
Senator Thom Tillis of North Carolina, a Republican member of the Senate’s banking committee, has criticized the probe as an attack on the Fed’s autonomy and stated his intention to block Warsh’s confirmation until the matter is resolved. Democrats and former Federal Reserve leaders have also condemned the investigation into renovation costs as a tactic to undermine the Fed’s independence from political pressures.
Senator Elizabeth Warren criticized the recent announcement, labeling it as a move to facilitate Warsh’s nomination by President Trump. Warren highlighted the ongoing pursuit of firing Lisa Cook and Pirro’s commitment to revisiting a criminal probe involving Powell if deemed necessary. Warsh, a former Fed governor, emphasized the importance of monetary policy independence during his testimony to U.S. senators, denying any assurances to Trump regarding interest rate cuts.
Warsh attributed an inflation surge post-COVID-19 to the central bank under Powell, which he claimed has adversely affected American households. The developments surrounding the Fed’s investigations and leadership transitions continue to draw attention and scrutiny from various stakeholders.