Pirro maintains pressure on Fed’s Powell despite dropping investigation

US Attorney for the District of Columbia Jeanine Pirro may have dropped her criminal investigation into outgoing Federal Reserve Chairman Jerome Powell, but she and her office remain at the center of a power struggle over the influential central bank. How he handles the imminent appeal will help determine the extent of President Donald Trump’s influence at the Fed.

Pirro has until Monday to appeal District of Columbia Chief Judge James Boasberg’s decision to withdraw his subpoena from the Fed.

What his office says in the filing will be important in determining how long Powell stays at the Fed after his presidency ends, and thus when Trump can appoint a new Fed governor to replace him. It could also determine whether the effective standoff between Trump and the Fed lasts or if the war resumes, which could disrupt markets.

The Justice Department did not respond to requests for comment. The Fed declined to comment.

Pirro said on April 24 he will close the investigation while Fed Inspector General Michael Horowitz looks at the cost of the restructuring. But he left himself plenty of room to open it up again.

“I will not hesitate to restart the criminal investigation if the truth is right,” said Pirro on the X site.

Trump said shortly afterward that he thought the investigation would continue. “It was not taken down,” Trump told reporters on April 25.

The Justice Department traditionally operates independently of the president, but in Trump’s second term it has continued to prosecute his political opponents. Former FBI Director James Comey was indicted for a second time this week after a jury dismissed the case in November.

Pirro wants the appeals court to overturn Boasberg’s decision to block the subpoena. That’s a problem for Powell because it suggests that Pirro is trying to stall the investigation long enough to get Powell out of the way while keeping the threat alive.

Powell, who plans to remain at the Fed as a member to oversee, and his legal team will be watching the appeal carefully. He said he received assurances from Pirro’s office that “if they appeal the recent court decision, they will not seek as part of that appeal to reopen the investigation or send a new subpoena.”

Pirro said the complaint is about basic principles. Boasberg is limiting his ability to investigate more widely, and not just in this case, Pirro argues.

“When a federal judge believes that he can stand in front of the grand jury’s door and prevent a prosecutor from entering, when the United States Supreme Court says that a prosecutor can enter on suspicion or hearsay, we have to appeal that decision,” Pirro told Fox News on Thursday.

But Pirro has not abandoned his claims that something is wrong with the Fed’s adjustment. “You have billions of dollars in costs for a very small project,” he said.

His office has been looking into that question for six months and has produced no evidence of wrongdoing.

Sean P. Murphy, a former assistant U.S. attorney, said Pirro appears to be passing the judge’s challenge to investigate.

“Judge Boasberg didn’t say you’re not going to serve the subpoena again,” Murphy said. “You say you have to be honest.”

Although Pirro says he’s trying to strengthen his ability to issue subpoenas, the appeal could backfire, Murphy said. The high court could agree with Boasberg and place sharper limits on what constitutes a politically motivated investigation.

Because of that kind of risk, DOJ procedures require complaints to be signed by the attorney general, a senior official who reports directly to the attorney general.

It’s unclear how Pirro and senior DOJ officials interacted with Powell’s investigation. The DOJ did not comment on the assurances Powell received from Pirro’s office about the status of the investigation.

Acting Attorney General Todd Blanche was asked Sunday if he would commit to not reopening the investigation. He did not answer the question directly but instead referred to Horowitz, the Fed’s inspector general. “If he reveals evidence of a crime, there is no doubt that we will investigate,” said Blanche.

Sen. Thom Tillis, RN.C., has resigned from his position as Fed Chair nominee Kevin Warsh because of his understanding that Pirro’s investigation is winding down. He and Powell said they believe the investigation will only be opened if Horowitz reveals new wrongdoing. But Blanche left open the possibility that he may not reopen the investigation even if what the IG finds is criminal.

“We’ll go from there, depending on what you get,” Blanche said Sunday.