Federal prosecutors conducted an unexpected inspection Tuesday at the Federal Reserve’s headquarters construction project in Washington, marking another chapter in the Trump administration’s ongoing confrontation with the nation’s central banking system.
Two deputy prosecutors working under U.S. Attorney Jeanine Pirro arrived without warning at the renovation site, according to confirmation from Pirro’s office. The Wall Street Journal first broke the story.
The prosecutors spoke with workers at the construction site before being told they needed advance authorization to tour the facility. They received contact details for the Federal Reserve’s legal team, according to the Journal’s reporting.
This latest development continues President Donald Trump’s intensive effort to influence Federal Reserve leadership, particularly Chair Jerome Powell, whose tenure concludes in May. Trump’s goal has been pushing for reduced interest rates, creating significant political controversy and legal battles.
The Justice Department has been conducting an investigation into Powell’s management of the central bank’s headquarters renovation project in Washington, D.C.
A federal judge previously determined that this investigation appears to be a barely concealed attempt to force Powell into either cutting interest rates or stepping down from his position. Despite this ruling, the Justice Department has indicated plans to appeal the decision.
Both Republican and Democratic former Federal Reserve chairs and previous government economic officials have expressed serious concerns about the Trump administration’s investigation.
The Federal Reserve was not immediately available to provide a statement. According to the Journal, Robert Hur, an external attorney representing the Fed, sent a letter of protest to Pirro’s office regarding Tuesday’s unexpected visit.
Hur stated that the prosecutors arrived “without prior notice” at the construction location, where they requested a walkthrough and indicated they wanted to monitor the renovation project’s advancement.
The principle of central bank independence in rate-setting decisions to manage inflation represents a fundamental aspect of sound economic governance, protecting monetary policy officials from immediate political pressures so they can concentrate on long-term price stability objectives.
Trump has selected former Federal Reserve Governor Kevin Warsh as his nominee to lead the central bank.
