U.S. federal prosecutors continue to pressure the Federal Reserve regarding allegations of misconduct in the Trump administration's renovation project and Chairman Jerome Powell's testimony before Congress. However, several legal experts point out that the investigation, led by U.S. Attorney Jeanine Pirro for the District of Columbia, appears to be stalled, and she faces pressure to appeal the judge's ruling within a limited timeframe.

According to a memo sent to prosecutors by the Federal Reserve's legal team, investigators from Piro's office conducted a surprise inspection of a Fed construction site on Tuesday. Fed lawyer Robert Hur wrote in the memo that they requested a site visit "without prior notice."



Piro stated, "Any construction project that experiences a cost overrun of nearly 80% deserves serious scrutiny."

The investigation is at a critical juncture, and the judge had previously dismissed the subpoena.

This visit by investigators comes at a crucial moment in the Piro investigation. Last month, Chief Judge James E. Boasberg of the U.S. District Court for the District of Columbia ruled that prosecutors had failed to meet the minimum standards for seeking a subpoena. He dismissed the subpoena previously issued by Piro's office and on April 3 rejected the prosecutors' appeal.

Under appeals court rules, Piro has 30 days to appeal the ruling to dismiss Boasberg's subpoena. This means May 4th could be a crucial date for the Senate to attempt a preliminary vote on Kevin Warsh's nomination, Trump's choice to succeed Powell as Federal Reserve Chairman.

Walsh's nomination fate is closely linked to the investigation.

Walsh's nomination fate is closely linked to the investigation into Powell.

North Carolina Republican Senator Thom Tillis reiterated on Tuesday that he would vote against advancing Warsh's confirmation process as long as the Piro investigation remains in progress. Both Tillis and Powell believe the investigation is an attempt to coerce the Federal Reserve into lowering interest rates.

Congress grants the Federal Reserve the power to set interest rates independently of politics because keeping interest rates low is generally politically popular, but this could raise inflation risks.

Walsh is scheduled to testify before the Senate Banking Committee on April 21, but his confirmation prospects remain uncertain due to obstruction by Tillis. The hearing is a necessary step before the committee votes on the nominee.

According to the earliest report by The Wall Street Journal, investigators' visit to the Federal Reserve may be an attempt to break the current deadlock.

The investigation lacks evidence, and legal experts believe it is unsustainable.

In March of this year, a prosecutor from Piro's office admitted in court to Judge Boasberg that the Justice Department "did not know" whether Powell had engaged in any misconduct and rejected the judge's suggestion to state any doubts in the absence of the defense. Boasberg subsequently ruled the prosecutor's subpoena unlawful because the government "did not provide any evidence of fraud whatsoever."

Columbia University law professor Daniel Richman, who previously headed the appeals division of the U.S. Attorney's Office for the Southern District of New York, stated that without new evidence, Piro's investigation into Powell will likely face judicial scrutiny.

Richman pointed out that Boasberg's ruling did not completely prohibit the government from continuing its investigation, but it explicitly required the government to produce solid evidence. He believes, "The appeals court will likely find Boasberg's conclusion correct, namely that the prosecutor failed to meet the minimum standard for issuing a grand jury subpoena."

Piro stated that she believes she has the right to continue the investigation. A person familiar with Piro's thinking, speaking on condition of anonymity, said, "She certainly has the right to continue the investigation." "The appeal ruling only concerns the issuance of a subpoena."

This means that even if the appeal deadline expires on May 4, the investigation may not reach a clear conclusion. Both Tillis and Powell have stated that simply ending the investigation is insufficient; they need to see a formal and definitive conclusion . Otherwise, Tillis may delay Walsh's nomination until his retirement from Congress in January 2027.

With Trump continuing to exert pressure, Piro may become a candidate for the next Attorney General.

Meanwhile, President Trump continued to insist on Wednesday that Powell had engaged in misconduct. He stated that he would fire Powell if he "does not leave on time." Powell's term as chairman ends on May 15, but he can remain as a governor until January 2028.

Trump dismissed Attorney General Pam Bondi earlier this month and is currently searching for a replacement. According to Politico, Piro is one of the potential candidates to succeed her.

Piro said at a press conference last week that she was happy with her current job.

Overall , the criminal investigation into Powell is currently facing significant legal hurdles, which not only directly affects Kevin Warsh's nomination confirmation process but also highlights the tense relationship between the Trump administration and the Federal Reserve.

Whether the investigation can achieve a breakthrough in the future, and how the Senate will handle Warsh's nomination, will remain the focus of attention for the market and the political community.