Prosecutors Could Revive Jerome Powell Probe as Jeanine Pirro Points to Fed Watchdog Review

Washington, D.C. — U.S. Attorney Jeanine Pirro has suggested that prosecutors could restart a criminal investigation involving Federal Reserve Chair Jerome Powell, depending on the findings of an internal review by the Federal Reserve’s inspector general. The matter centers on questions about cost overruns and congressional testimony related to renovations at the Federal Reserve headquarters. Reuters reported that Pirro said the Fed watchdog’s findings would guide what happens next.

Background of the Powell Investigation

The investigation focused on whether Powell made false or misleading statements to Congress about a major Federal Reserve headquarters renovation project. The renovation reportedly drew scrutiny because of its high cost and questions about whether earlier descriptions of the project matched later documents and planning details.

Pirro’s office had previously pursued subpoenas connected to the matter. However, a federal judge blocked those subpoenas, criticizing the inquiry as politically motivated and aimed at pressuring Powell during a tense period between the Trump administration and the Federal Reserve.

Jeanine Pirro Says Review Will Shape Next Steps

Speaking about the issue, Pirro indicated that her office would look to the Federal Reserve inspector general’s review before deciding whether further action is necessary. While the criminal probe had been dropped, her comments left open the possibility that prosecutors could revisit the case if new findings supported that move.

This does not mean Powell has been charged with any crime. At this stage, the issue remains tied to review, oversight, and legal disagreement over whether prosecutors had a proper basis to continue the investigation.

Why the Case Matters

The controversy is important because it touches not only on Powell’s conduct, but also on the independence of the Federal Reserve. The Fed plays a major role in setting interest-rate policy, fighting inflation, and guiding the U.S. economy. Any legal pressure on its chair can raise concerns among investors, lawmakers, and economists.

Critics of the investigation have argued that it appeared connected to political pressure on Powell, who has resisted calls for sharp interest-rate cuts. Supporters of further review argue that public officials should answer questions about major spending projects and statements made to Congress.

Political Pressure Around the Federal Reserve

The dispute comes during a broader conflict between President Donald Trump’s administration and Powell. Trump has repeatedly criticized Powell over interest rates, while Powell has defended the Fed’s need to make decisions based on economic data rather than political demands.

According to Reuters, Pirro said she would rely on the internal watchdog’s findings and had requested that review after dropping the criminal investigation. Her office also planned to continue litigation related to the court order blocking subpoenas.

Reaction From Lawmakers

Republican Senator Thom Tillis, who had criticized the probe, reportedly supported Pirro’s decision to defer to the inspector general. Tillis suggested that he did not believe a crime had occurred, based on conversations with other prosecutors.

The case has also affected discussions around Powell’s future and the leadership of the Federal Reserve. Reuters reported that the dropped investigation cleared the way for Kevin Warsh’s likely Senate confirmation as Powell’s successor, while Powell has said he intends to continue serving as a Fed governor.

What Happens Next

The next major step is the inspector general’s review. If that review finds serious evidence of wrongdoing, prosecutors could use it to justify reopening the matter. If it finds no meaningful basis for criminal concern, the issue may fade as a legal matter, though the political debate around the Federal Reserve is likely to continue.

For now, Powell remains a central figure in one of Washington’s most sensitive economic debates: how independent the Federal Reserve should be when its decisions clash with the political goals of the White House.

Conclusion

The Jerome Powell investigation remains unresolved in a political sense, even though the criminal probe was dropped. Jeanine Pirro’s latest comments show that prosecutors have not fully closed the door. The final direction may depend on what the Federal Reserve inspector general finds, and whether those findings support further legal action.

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