U.S. Attorney Jeanine Pirro said a Justice Department investigation into Federal Reserve Chair Jerome Powell could have been avoided if the central bank had answered repeated inquiries about cost overruns and congressional testimony.
By yourNEWS Media Newsroom
U.S. Attorney for the District of Columbia Jeanine Pirro said Tuesday that a Justice Department probe involving Federal Reserve Chair Jerome Powell was prompted by the central bank’s failure to respond to repeated outreach from federal prosecutors.
In a statement posted Jan. 13 on X, Pirro said her office had contacted the Federal Reserve multiple times regarding cost overruns tied to renovations of the Fed’s headquarters and Powell’s testimony before the Senate Banking Committee in June. Those inquiries, she said, went unanswered.
“Our outreach was ignored, necessitating the use of legal process — which is not a threat,” Pirro wrote. “The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s. None of this would have happened if they had just responded to our outreach.”
Pirro added that the U.S. Attorney’s Office acts strictly on the merits of each case and expects full cooperation from the Fed, emphasizing that “no one is above the law.”
Powell disclosed over the weekend that the Justice Department served grand jury subpoenas to the Federal Reserve on Jan. 9 and warned of a potential criminal indictment. According to Powell, the inquiry centers on his testimony to Congress about a $2.5 billion renovation project at the Fed’s headquarters in Washington.
In a video statement released Jan. 11, Powell characterized the investigation as based on “pretexts” and said it should be viewed “in the broader context of the administration’s threats and ongoing pressure.”
President Donald Trump said he was unaware of the investigation when asked by reporters Monday. “He’s billions of dollars over budget,” Trump said before boarding Air Force One. “So, he either is incompetent, or he is crooked. I don’t know what he is, but he certainly doesn’t do a very good job.”
The renovation project was approved in 2017 with an initial budget of $1.9 billion. The cost was later revised to $2.5 billion, citing higher labor and material expenses, asbestos removal, soil contamination, and construction delays.
National Economic Council Director Kevin Hassett said the project has become one of the most expensive buildings in Washington’s history and argued that Powell should welcome scrutiny. “If I were Fed chair, I would want them to do that,” Hassett said Sunday. “It’s really important to understand where the taxpayer money goes and why.”
Powell has also received public backing from prominent economic figures. Former Federal Reserve Chairs Ben Bernanke, Alan Greenspan, and Janet Yellen, along with 13 other former officials, co-signed a joint statement defending Powell and criticizing what they described as “prosecutorial attacks.”
“This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly,” the statement said.
International institutions have also weighed in. The European Central Bank publicly expressed support for Powell amid the controversy.
The Federal Reserve is scheduled to hold its next two-day monetary policy meeting on Jan. 27 and 28. Investors widely expect the central bank to leave interest rates unchanged.
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