The investigation by the Justice Department into cost overruns during renovations at the Federal Reserve under the leadership of chairman Jerome Powell is coming to a close, according to U.S. Attorney Jeanine Pirro. Pirro has requested the Inspector General of the Federal Reserve to review the building costs, emphasizing the IG’s ability to ensure accountability to American taxpayers. She anticipates a detailed report soon to address lingering questions that prompted subpoenas from her office.
Although the subpoenas to the Fed’s board of governors were recently blocked by a federal judge for allegedly pressuring Powell to comply with President Donald Trump’s demands regarding interest rates, Pirro had vowed to appeal the ruling and continue the investigation. Powell’s term as chair is scheduled to end on May 15, and the ongoing probe has influenced his decision to remain a Fed governor until 2028.
The Trump administration’s actions, including threats against Powell and the criminal investigation, have caused delays in the confirmation process of Kevin Warsh as Powell’s potential successor. Senator Thom Tillis has criticized the probe as an attack on the Fed’s independence and has promised to block Warsh’s confirmation until the matter is resolved.
Critics, including Democrats and former Federal Reserve leaders, view the investigation into renovation costs as a tactic to undermine the Fed’s autonomy from the White House. President Trump had previously provided inaccurate cost figures for the renovations, prompting a correction from Powell during a public appearance. The administration’s attempt to dismiss Governor Lisa Cook, who was appointed by Biden, is pending in the U.S. Supreme Court.
Senator Elizabeth Warren denounced the recent announcement, alleging it was a strategic move to facilitate Warsh’s nomination as Fed chair under Trump’s influence. Warsh stressed the importance of monetary policy independence during his Senate testimony and clarified that he had not made any commitments to Trump regarding interest rate adjustments. He attributed the current inflation levels to the policies implemented under Powell’s leadership following the COVID-19 pandemic.