U.S. Attorney for the District of Columbia Jeanine Pirro on Monday rejected claims that the Justice Department threatened Federal Reserve Chair Jerome Powell, arguing that the investigation resulted from the Fed’s failure to engage with investigators. Pirro said repeated outreach by her office went unanswered, leaving prosecutors no choice but to use formal legal processes.
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In a post on X, Pirro said her office attempted multiple times to discuss cost overruns tied to the Federal Reserve’s headquarters renovation and Powell’s congressional testimony. She said the use of subpoenas was procedural, not coercive. “The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s,” Pirro wrote, adding that the situation could have been avoided if the Fed had cooperated.
Pirro emphasized that the investigation is based solely on the facts and not political considerations. She said her office agrees with Powell’s public assertion that no one is above the law and expects full cooperation from the Federal Reserve as the inquiry continues.
Her comments came a day after Powell said the Justice Department served the Fed with grand jury subpoenas and threatened criminal charges related to his June testimony before the Senate Banking Committee. That testimony addressed the estimated $2.5 billion renovation of the Fed’s Washington headquarters, a project that has drawn scrutiny over its rising costs.
Powell has suggested the investigation cannot be separated from longstanding tensions with President Donald Trump, who appointed him in 2017 but has frequently criticized him since. Trump has publicly attacked Powell over interest rate policy and has questioned his leadership, at times using personal insults to describe the Fed chair.
Trump said he was unaware of the investigation but continued to criticize Powell, saying he was ineffective both as Fed chair and in overseeing the renovation project. While Trump has complained about the ballooning costs—now roughly $700 million over budget—he has also said the renovation alone does not justify removing Powell and that he wants to see the project completed.[/read]