US Attorney May Reopen Powell Investigation After Fed Probe

US Attorney Jeanine Pirro stated she may reopen a criminal investigation into Federal Reserve Chair Jerome Powell, contingent upon findings from an inspector general's probe into Federal Reserve building renovations. These comments follow the temporary suspension of the investigation and the recent Senate Banking Committee approval of Powell's potential successor, Kevin Warsh.

Status of the Investigation

Pirro indicated that the decision to proceed with or suspend the investigation hinges on the outcome of the ongoing review. She told CNN’s Jake Tapper on “State of the Union”: “I want to see what’s there. If there’s something there, great. And if there isn’t, I’ll go home.”

Key points regarding the investigation include:

• The Justice Department initially launched the probe into Powell, who has been a frequent target of criticism from President Donald Trump regarding interest rate decisions.
• Pirro’s office previously suspended the investigation, noting that the Federal Reserve’s Office of the Inspector General (OIG) would conduct its own inquiry.
• Pirro confirmed that after the OIG concludes its report, her office “will not hesitate to restart a criminal investigation should the facts warrant doing so.”

Legal and Political Developments

Beyond the investigation, Pirro's office plans to appeal a judge's ruling that dismissed subpoenas related to the case. Pirro emphasized the importance of this appeal, stating it is crucial for prosecutors to prevent limitations on grand jury proceedings.

Meanwhile, Senator Thom Tillis (R-NC) commented on the situation, stating that while he supports Warsh, he believes Powell committed no crimes while in office. Tillis previously argued that the investigation threatened the Fed's independence and had delayed the committee vote on Warsh’s nomination.

Context and Ongoing Tensions

The scrutiny surrounding the Fed and Powell remains high amid political tensions:

• Trump Criticism: Since beginning his second term, President Trump has intensified public criticism of Powell and the Federal Reserve’s Board of Governors regarding monetary policy.
• Powell's Stance: Powell has repeatedly asserted that rate decisions are not influenced by political factors. He has stated he will remain as a governor until the criminal investigation concludes.
• Succession: Kevin Warsh’s nomination for Fed Chair still requires confirmation from the full Senate.