Prosecutors from U.S. Attorney Jeanine Pirro’s office attempted to tour the Federal Reserve’s headquarters renovation site on Tuesday but were turned away. The unannounced visit came as the investigation into Fed Chair Jerome Powell’s testimony about the project has stalled.
Core Facts
Prosecutors from Pirro’s office arrived at the Fed’s construction site in downtown Washington, D.C., and requested a tour, according to an email from the Fed’s outside counsel, Robert Hur. Hur cited a recent court ruling that blocked subpoenas issued by Pirro’s office, stating the investigation was pretextual. The Fed’s renovation project, which has cost $2.5 billion, has been under scrutiny since November.
Deeper Context
The Investigation’s Origins
The probe began in November 2023, focusing on Powell’s congressional testimony about the Fed’s renovation costs. In January, Powell revealed the Fed had received grand jury subpoenas, which he called an attempt to intimidate the central bank. Powell argued the investigation was politically motivated, citing President Trump’s criticism of his interest rate policies.
Legal Developments
On March 13, Chief Judge James Boasberg quashed the subpoenas, stating the government had provided “essentially zero evidence” to suspect Powell of a crime. The ruling described the investigation as pretextual, meaning it lacked a legitimate legal basis. The Fed’s legal team has since rejected further requests for access to the site.
Unorthodox Tactics
Pirro’s office has faced criticism for its tactics, including a previous attempt by her predecessor to visit New York Attorney General Letitia James’s home, which was deemed unethical. The Fed’s renovation, funded by its own earnings rather than taxpayer dollars, has drawn scrutiny over its cost and transparency.
Powell’s Response
Powell has maintained the investigation is an attempt to influence Fed policy. In a video statement, he said the probe threatened criminal charges for setting interest rates based on economic data rather than political preferences. The Fed has not faced any criminal charges, and the investigation has not yielded evidence of wrongdoing.