US Attorney Jeanine Pirro on Wednesday doubled her investigation of the Federal Reserve, as the controversial investigation threatens the confirmation of Kevin Warsh, President Donald Trump’s choice to replace central bank Chairman Jerome Powell.
The criminal investigation centers on alleged cost overruns related to the ongoing renovation of two historic Fed buildings in Washington. Powell accused the DOJ of targeting him by refusing to listen to Trump’s request that the Fed cut interest rates significantly.
The investigation raised concerns about the Fed’s independence from executive branch interference – so much so that Sen. Thom Tillis, RN.C., vowed to block Warsh’s nomination until the DOJ withdraws it.
In a press conference on Wednesday morning, Pirro said he will not back down.
“The cost overruns in that building are over a billion dollars. This investigation is still ongoing,” said Pirro.
“I am in the legal line. There are others who were in the political line. I am not against those two lines,” he said.
Pirro’s efforts hit a high gear last month when a federal judge blocked the grand jury, writing that “overwhelming evidence” suggests they were released to pressure the Fed’s board.
The judge, James Boasberg, upheld his decision in early April, starting a countdown clock for Pirro to file an appeal on May 4.
“I’m still going forward. We oppose the decision of Judge Boasberg,” said Pirro on Wednesday.
“The idea that a judge can stand at the door of the grand jury and tell the prosecutor, ‘You are not allowed to enter,’ when the Supreme Court of the United States said you can enter the grand jury because of rumors and allegations, is an order that we think should be passed, and we are continuing this investigation,” he said.
Trump, who nominated Powell in 2017 but has been bitter about the Fed chairman, said the DOJ investigation should continue, while outlining the cost of the Fed’s overhaul.
“We’ve got to find out why a little building costs almost four billion dollars,” Trump told CNBC’s “Squawk Box” Tuesday morning. “Somehow we have to find out how this is possible.”
The actual cost is estimated at $2.5 billion.
Boasberg’s April 3 denial of Pirro’s request to review his original decision started a 30-day clock for the government to file a notice of appeal, according to a DOJ handbook.
Warsh’s nomination to replace Powell, whose term as Fed chairman ends on May 15, must first be approved by the Senate Banking Committee. Tillis, a member of the Banking Committee, has repeatedly said he will block Warsh from moving forward unless the DOJ drops its investigation of Powell.
The Banking Committee held its confirmation hearing with Warsh on Tuesday, and the nominee met with Senate Majority Leader John Thune, RS.D., on Wednesday.
With the Senate retiring the week of May 4, the committee could get its first chance to vote on Warsh’s nomination during the week of May 11.
