US prosecutors intensify investigation into the Federal Reserve; Warsh's nomination faces stalemate.
2026-04-23 13:12:15
U.S. Attorney Jeanine Pirro for the District of Columbia reiterated on Wednesday (April 22) that she will resolutely pursue the criminal investigation into the Federal Reserve, even though this controversial investigation has seriously jeopardized the nomination process for Kevin Warsh, President Trump's nominee to succeed Jerome Powell as Fed chair.
The core of this criminal investigation revolves around alleged cost overruns in the renovation project of two historic buildings belonging to the Federal Reserve in Washington, D.C. Powell publicly accused the Justice Department of launching the investigation solely because he refused to comply with Trump's order for the Federal Reserve to drastically lower interest rates, calling it blatant political retaliation.
This investigation has sparked strong concerns about the Federal Reserve's independence, with the risk of interference from the executive branch rising sharply. It is precisely out of a desire to uphold the Fed's independence that North Carolina Republican Senator Thom Tillis publicly stated that he would resolutely block Warsh's nomination from proceeding in the Senate unless the Justice Department drops its investigation into Powell.
At a press conference on Wednesday morning, Piro made it clear that he would not back down an inch.
Piro stated, "The renovation costs for this building have exceeded $1 billion, and this investigation will continue." She further added, "I'm only on the legal track; everyone else is on the political track. These two tracks don't intersect."
The investigation led by Piro suffered a major setback last month when a federal judge dismissed the grand jury subpoenas filed by prosecutors, stating in the ruling that "substantial evidence" showed that the subpoenas were actually intended to pressure the Federal Reserve Board.
Judge James Boasberg upheld the previous dismissal ruling in early April and set a deadline of May 4 for Piro to file an appeal.
"We will continue to move forward and will appeal Judge Bosberg's ruling," Piro stated firmly at a press conference on Wednesday. She added, "The U.S. Supreme Court has made it clear that prosecutors can initiate a grand jury investigation based on hearsay and suspicion, and a judge standing at the grand jury door to obstruct prosecutors' work is a ruling we believe must be appealed, and the investigation will continue."
Trump appointed Powell as Federal Reserve Chairman in 2017, but their relationship deteriorated afterward, with Trump repeatedly expressing his dissatisfaction with Powell publicly. Trump explicitly stated his support for the Justice Department's continued investigation and deliberately exaggerated the cost of the Fed's overhaul project.
Trump said Tuesday morning, "We have to find out why a small building cost nearly $4 billion, we have to figure out how this happened."
In fact, the project's total cost was approximately $2.5 billion.
According to the Department of Justice's operating manual, after Judge Bosberg rejected Piro's request for reconsideration on April 3, the prosecution was required to file a notice of appeal within 30 days.
Jerome Powell's term as Federal Reserve Chairman expires on May 15, and Warsh's nomination must first be approved by the Senate Banking Committee. Tillis, a committee member, has repeatedly stated that he will continue to obstruct Warsh's nomination as long as the Justice Department does not drop its investigation into Powell.
The Senate Banking Committee held a hearing on Warsh's nomination on Tuesday (April 21), and Warsh himself met with Senate Majority Leader John Thune, a Republican senator from South Dakota, on Wednesday.
With the Senate adjourning during the week of May 4, the Banking Committee may hold its first vote on Warsh's nomination as early as the week of May 11.
Key findings of the investigation: Huge cost overruns during Fed building renovations; Powell claims political retaliation.
The core of this criminal investigation revolves around alleged cost overruns in the renovation project of two historic buildings belonging to the Federal Reserve in Washington, D.C. Powell publicly accused the Justice Department of launching the investigation solely because he refused to comply with Trump's order for the Federal Reserve to drastically lower interest rates, calling it blatant political retaliation.
This investigation has sparked strong concerns about the Federal Reserve's independence, with the risk of interference from the executive branch rising sharply. It is precisely out of a desire to uphold the Fed's independence that North Carolina Republican Senator Thom Tillis publicly stated that he would resolutely block Warsh's nomination from proceeding in the Senate unless the Justice Department drops its investigation into Powell.
Piro made a strong statement: the investigation will not back down, and he insisted on adhering to the separation of law and politics.
At a press conference on Wednesday morning, Piro made it clear that he would not back down an inch.
Piro stated, "The renovation costs for this building have exceeded $1 billion, and this investigation will continue." She further added, "I'm only on the legal track; everyone else is on the political track. These two tracks don't intersect."
Legal Obstruction: Judge Rejects Subpoena, Piro Decides to Appeal
The investigation led by Piro suffered a major setback last month when a federal judge dismissed the grand jury subpoenas filed by prosecutors, stating in the ruling that "substantial evidence" showed that the subpoenas were actually intended to pressure the Federal Reserve Board.
Judge James Boasberg upheld the previous dismissal ruling in early April and set a deadline of May 4 for Piro to file an appeal.
"We will continue to move forward and will appeal Judge Bosberg's ruling," Piro stated firmly at a press conference on Wednesday. She added, "The U.S. Supreme Court has made it clear that prosecutors can initiate a grand jury investigation based on hearsay and suspicion, and a judge standing at the grand jury door to obstruct prosecutors' work is a ruling we believe must be appealed, and the investigation will continue."
Trump's strong support for the investigation and his exaggerated claims about renovation costs have sparked controversy.
Trump appointed Powell as Federal Reserve Chairman in 2017, but their relationship deteriorated afterward, with Trump repeatedly expressing his dissatisfaction with Powell publicly. Trump explicitly stated his support for the Justice Department's continued investigation and deliberately exaggerated the cost of the Fed's overhaul project.
Trump said Tuesday morning, "We have to find out why a small building cost nearly $4 billion, we have to figure out how this happened."
In fact, the project's total cost was approximately $2.5 billion.
Nomination deadlock: Tillis vetoes Walsh's appointment, leaving the nomination unresolved.
According to the Department of Justice's operating manual, after Judge Bosberg rejected Piro's request for reconsideration on April 3, the prosecution was required to file a notice of appeal within 30 days.
Jerome Powell's term as Federal Reserve Chairman expires on May 15, and Warsh's nomination must first be approved by the Senate Banking Committee. Tillis, a committee member, has repeatedly stated that he will continue to obstruct Warsh's nomination as long as the Justice Department does not drop its investigation into Powell.
The Senate Banking Committee held a hearing on Warsh's nomination on Tuesday (April 21), and Warsh himself met with Senate Majority Leader John Thune, a Republican senator from South Dakota, on Wednesday.
With the Senate adjourning during the week of May 4, the Banking Committee may hold its first vote on Warsh's nomination as early as the week of May 11.
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