Unwelcome Tour Request
Prosecutors from U.S. Attorney Jeanine Pirro's office made an unannounced visit to the Federal Reserve headquarters on Tuesday. They requested a tour of the construction site and stated they wanted to "check on progress" of the renovations, according to Robert Hur, an attorney for Federal Reserve Chairman Jerome Powell. A building contractor turned them away and referred them to Fed attorneys.
Legal Wrangling
Hur sent an email to Pirro's prosecutors, noting that U.S. District Judge James Boasberg had concluded that their interest in the Federal Reserve's renovation project was "pretextual." Hur also asked the prosecutors to commit to not seeking to communicate with his client outside the presence of counsel. Hur represents Powell, and formerly served as special counsel who investigated former President Joe Biden's handling of classified documents.
Political Motivation Alleged
U.S. District Judge James Boasberg concluded that the DOJ's interest in the Federal Reserve's renovation project was "pretextual." Powell rebuked the investigation in a video message in January as a politically motivated effort to influence the Fed's interest rate policy. Pirro denied that politics played any role in her probe of Powell, stating that the focus was whether public money has been wasted as a result of the Fed's renovations, and potential false statements to Congress by Powell about the operations.
Congressional Opposition
The investigation has faced bipartisan opposition in Congress. Sen. Thom Tillis posted a link on social media to an article about the visit below an image of the Three Stooges and wrote, "The U.S. Attorney's Office for D.C. at the crime scene." Tillis has said that he would block Kevin Warsh's confirmation until the federal criminal probe into Powell has ended.
Trump's Threats
Trump said he would fire Powell if he does not vacate his board seat when his term ends on May 15. He told Fox Business that if Powell does not leave, then he would "have to fire him." Legal experts have questioned if Trump has the authority to fire Powell. Trump's attempt to fire Fed Governor Lisa Cook is currently awaiting a decision at the Supreme Court.
Renovation Costs
The investigation by Pirro's office centered on testimony last June by Powell before the Senate Banking Committee, when he was asked about cost overruns on the Fed's extensive building renovations. The current estimated cost of $2.5 billion is about $600 million higher than a 2022 estimate of $1.9 billion. Pirro characterized the overruns as nearly 80% above the original construction budget.
Pirro, the U.S. Attorney, said on X that 'Any construction project that has cost overruns of almost 80% over the original construction budget deserves some serious review.'
Confirmation Delay
Last month, Tillis said that he would block Warsh's confirmation until the federal criminal probe into Powell has ended. If a nominee fails to be confirmed, Powell would stay on as the chair until one is confirmed.
The unusual visit and subsequent legal and political backlash highlight the tensions surrounding the Federal Reserve and its leadership, potentially impacting the confirmation of Powell's successor and the future direction of monetary policy.
The sources report the testimony occurred last year, not specifically last June as the summary states.