Democratic Senators Elizabeth Warren and Dick Durbin expressed concern regarding U.S. Attorney Jeanine Pirro's statement, warning that a criminal probe into Federal Reserve Chair Jerome Powell could be reopened at any time.
Pirro's Announcement and Investigation Scope
In a statement released Friday, Jeanine Pirro indicated that the Fed's inspector general (IG) had been asked to investigate cost overruns related to an ongoing renovation project. Pirro did not specify who initiated this inquiry. It is noted that Chair Powell had previously requested the IG look into this matter last year.
Pirro stated: "I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so."
Senators Question Political Motives
In a letter to Pirro, Senators Warren and Durbin asserted that the Department of Justice's criminal investigation into Chair Powell was merely "temporarily paused." The senators questioned the potential political motivations behind the investigation's status, asking Pirro: "From your perspective, what are the types of 'facts' that would warrant reopening the investigation?"
Their letter also sought clarification on several points:
- Whether President Donald Trump or other administration officials were informed about the decision to halt the investigation.
- Specific details regarding the request made to the Fed's inspector general.
Background on the Probe and Legal Hurdles
- Initial Subpoenas: Powell had previously denounced subpoenas issued by Pirro's office, suggesting they were a pretext, and alleging the Trump administration was dissatisfied with his interest rate decisions.
- Legal Developments: Prosecutors for Pirro's office had previously told a judge in March that they lacked specific evidence of wrongdoing, leading the judge to quash the subpoenas. Appellate attorneys advised that appealing this decision would be difficult.
- Fed Response: The Federal Reserve declined to comment on Pirro's decision on Friday.
Broader Context and Political Tensions
The senators' letter highlights ongoing political tensions surrounding the Fed. Separately, Senator Warren stated she did not believe the Senate should delay the confirmation process for Kevin Warsh, Trump's nominee to replace Powell. Meanwhile, a Republican committee member, Sen. Thom Tillis of North Carolina, has pledged to block the nomination while the investigation remains active.
