U.S. Attorney Jeanine Pirro on Wednesday stepped up her investigation into the Federal Reserve, despite the controversial confirmation of Kevin Warsh, President Donald Trump’s pick to replace central bank chairman Jerome Powell.
The criminal investigation focuses on alleged cost overruns related to ongoing renovations of two historic Federal Reserve Bank buildings in Washington. Mr. Powell accused the Justice Department of targeting him for not complying with Mr. Trump’s demands for deep Fed interest rate cuts.
The investigation has raised concerns about the Fed’s independence from executive branch interference, with Sen. Thom Tillis (RN.C.) vowing to block Warsh’s nomination until the Justice Department withdraws it.
At a press conference Wednesday morning, Pirro said he would not withdraw.
“The cost overrun on that building is well over $1 billion. The investigation continues,” Pirro said.
“I’m in the legal lane. Some people were in the political lane. I don’t cross those two lanes,” she said.
Mr. Pirro’s efforts hit a major deadlock last month when a federal judge blocked the grand jury subpoenas, writing that there was “mountain evidence” suggesting the grand jury subpoenas were issued to pressure the Fed’s board.
Judge James Boasberg upheld the ruling in early April, starting a countdown for Pirro to file an appeal by May 4.
“I will move forward. I am appealing Judge Boasberg’s decision,” Pirro said Wednesday.
“The idea that a judge can stand at the door of a grand jury and say to prosecutors, ‘You’re not allowed to go in,’ when the United States Supreme Court has said you can go into a grand jury based on rumors and suspicions, we think we have to appeal, and we’re continuing to look into it,” he said.
President Trump, who appointed Powell in 2017 but has since deteriorated in his attitude toward the Fed chair, has insisted that the Justice Department’s investigation should continue while inflating the cost of the Fed’s overhaul.
“We need to figure out why a small building cost nearly $4 billion,” Trump said Tuesday morning on CNBC’s “Squawk Box.” “Somehow, we have to figure out why this happens.”
The actual cost is approximately $2.5 billion.
According to a Justice Department manual, Boasberg’s April 3 denial of Pirro’s motion to reconsider his initial ruling began a 30-day countdown until the government filed a notice of appeal.
Warsh’s nomination to replace Powell, whose term as Fed chair expires on May 15, must first be approved by the Senate Banking Committee. Mr. Tillis, a member of the Banking Committee, has repeatedly said he will prevent Mr. Warsh from appearing in court unless the Justice Department drops its investigation into Mr. Powell.
The Banking Committee held Warsh’s confirmation hearing on Tuesday, and the nominee met with Senate Majority Leader John Thune (D) on Wednesday.
The Senate will be in session the week of May 4, so the committee could have its first opportunity to vote on Warsh’s nomination the week of May 11.
