DOJ Closes Investigation into Federal Reserve Chairman Jerome Powell
The Department of Justice (DOJ) has concluded its criminal investigation concerning Federal Reserve Chairman Jerome Powell. U.S. Attorney for the District of Columbia, Jeanine Pirro, stated that her office is ending its inquiry into the Federal Reserve’s $2.5 billion renovation of its building.
Oversight of the situation has been handed over to the Federal Reserve Board Inspector General, Michael E. Horowitz, who has been tasked with reviewing the cost overruns involved in the project.
“This morning, the Federal Reserve’s Inspector General was asked to review billions of dollars in construction cost overruns borne by taxpayers,” Pirro mentioned. “The IG has the authority to hold the Federal Reserve System accountable to American taxpayers. I look forward to a comprehensive report soon and am confident that its findings will help this agency fully resolve the questions that led it to issue the subpoenas.”
“While I am directing my office to close this investigation, we will not hesitate to reopen a criminal investigation if the facts warrant,” she added.
Powell had previously testified before Congress about the renovation, insisting that certain “luxury” features were not the cause of rising costs.
In July, Rep. Anna Paulina Luna (R-Fla.) lodged a criminal complaint against Powell, claiming he committed perjury regarding the renovation project. The investigation began officially in November, with a grand jury subpoena issued in January.
Chief U.S. District Judge James Boasberg, appointed by President Obama, criticized the DOJ’s actions during a closed-door session in March. He remarked that the evidence presented for Powell’s supposed criminal actions was “virtually zero.”
The judge also implied that the investigation seemed to serve as an unwarranted pressure tactic against the Federal Reserve Chairman rather than a genuine pursuit of justice.
On Friday, White House press secretary Caroline Leavitt reassured that the investigation is still under consideration and could be reopened if needed.
“U.S. Attorney Janine has stated that this case isn’t necessarily being dropped, but rather important tools are being transferred to the inspector general for further investigation into the Fed’s financial mismanagement,” Leavitt noted.
“This was clearly a priority for the president. The ongoing costs to taxpayers from this lengthy project underscore the necessity to investigate fully. So, while the focus has shifted, the inquiry continues under a different authority.”
The change in oversight could also spotlight Kevin Warsh, a financier and former Federal Reserve board member, whom Trump has nominated as a potential replacement for Powell.
