US Attorney Jeanine Pirro defends Fed investigation after Powell claims

U.S. Attorney for the District of Columbia Jeanine Pirro said Monday that the Federal Reserve has repeatedly failed to respond to her office’s inquiries about alleged cost overruns and Chairman Jerome Powell’s testimony to Congress. incite prosecutors to initiate legal proceedings which, according to her, “does not constitute a threat”.

“The word ‘accusation’ came out of Mr. Powell’s mouth, and no one else’s. None of this would have happened if they had simply complied with our request,” Pirro said.

“This office makes decisions based on merit, no more, no less. We agree with the Chairman of the Federal Reserve that no one is above the law, and that is why we expect his full cooperation.”

A person familiar with the matter told Fox News Digital that the Federal Reserve received two emails over the winter break that conveyed no sense of urgency and made no mention of a criminal investigation, before receiving a subpoena.

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In a video statement released Sunday, Powell said the Justice Department served the Federal Reserve with grand jury subpoenas on Friday, describing the move as a threat of a criminal charge related to his June testimony before the Senate Banking Committee.

The testimony focused in part on a multi-year, $2.5 billion project to renovate two Federal Reserve Office Buildings: the Marriner S. Eccles Federal Reserve Board Building and the 1951 Constitution Avenue Building.

Powell said the Justice Department’s “new threat” was a “pretext” unrelated to his Senate testimony or the renovation project.

“The threat of criminal prosecution is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the president’s preferences,” he said. “It’s a question of whether the Fed will be able to continue setting interest rates based on evidence and economic conditions, or whether monetary policy will instead be driven by political pressure or intimidation.”

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Powell resisted the president’s repeated calls Donald Trump to cut interest rates more aggressively, even though the Federal Reserve cut rates three times in late 2025.

Rep. Anna Paulina Luna, R-Fla., referred Powell to the Justice Department in July, alleging in a letter to the attorney general Pam Bondithat he misrepresented the scope and features of the Federal Reserve’s renovation project and made false statements to officials about its escalating price tag.

She said the renovation costs there was a budget overrun of $700 million.

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The Federal Reserve said on its website that the cost increases were due to design changes following consultations with reviewing agencies, higher-than-expected material and labor costs, and unforeseen conditions such as additional asbestos and toxic soil contamination.

Several Republican lawmakersincluding Senators Thom Tillis of North Carolina and Lisa Murkowski of Alaska, questioned the Justice Department’s motive for issuing grand jury subpoenas the Federal Reserve, raising fears that the measure could undermine the independence of the central bank.

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“If there remained any doubt about whether advisors within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should no longer be any. It is now the independence and credibility of the Justice Department that are in question,” Tillis said.

He added that he would oppose the confirmation of any Fed nominee, including the next vacancy to head the Federal Reserve, until the legal issue was “fully resolved.”