The federal prosecutor who abandoned a criminal investigation into Federal Reserve Chairman Jerome Powell announced Sunday that the outcome of an internal Fed watchdog review will determine whether the matter continues or closes permanently.
U.S. Attorney Jeanine Pirro, who was appointed during the Trump administration, initiated the criminal probe against Powell in January but abandoned it last month following a federal judge’s decision to block Justice Department subpoenas related to the case.
During an appearance on CNN’s “State of the Union” program Sunday, Pirro discussed the Federal Reserve Office of Inspector General’s review of renovation cost overruns at the central bank’s Washington headquarters, stating: “If there’s something there, great – and if there isn’t, I’ll go home.”
Powell, who frequently faced criticism from Trump, had condemned the criminal probe as an attack on the Federal Reserve’s independence. Judge James Boasberg determined that prosecutors improperly issued subpoenas, ruling that a “mountain of evidence” indicated the investigation was designed to pressure Powell into cutting interest rates quickly or stepping down from his position.
After ending the criminal investigation, Pirro requested that the Inspector General review the cost overruns. The Inspector General had already begun examining the renovation project following Powell’s request for a review last year.
“The only way to find out what happened is through the Inspector General,” Pirro stated.
However, Pirro indicated her office plans to continue legal challenges, saying “we continue to litigate the issue, and we will litigate the issue” and “we’re going to make a motion to vacate the order” issued by Boasberg to establish precedent regarding investigations.
Since returning to office in January 2025, Trump has consistently pressured the Federal Reserve to reduce interest rates more aggressively and extensively than the central bank has implemented, despite ongoing inflation concerns.
The criminal investigation had threatened Senate confirmation of Kevin Warsh, Trump’s choice to succeed Powell when his leadership term concludes on May 15. Republican Senator Thom Tillis, who opposed the probe, had blocked Warsh’s confirmation until the investigation ended.
Pirro’s decision to end the probe and defer to the Inspector General has cleared the path for Warsh’s nomination to advance, with approval by the Republican-majority Senate appearing highly likely.
Also appearing on CNN’s “State of the Union,” Tillis praised Pirro’s statements and said her choice to pause further action while the internal watchdog conducts its review represents “the way this process is supposed to work.”
Should the Inspector General discover evidence of criminal conduct, Tillis said, “then we’ll talk about it. But I think this is a nice way of just ramping it down.”
Tillis also remarked that “at the end of the day, there was no crime committed – and prosecutors that I’ve spoken with all agree.”
During last Wednesday’s Federal Open Market Committee meeting, Powell announced he would remain as a Fed governor following the conclusion of his chairman term.
“I’m encouraged by recent developments, and I’m watching the remaining steps in this process carefully,” Powell commented.
