Warren and Durbin criticize Pirro for the decision to stop the Powell investigation

The Justice Department’s criminal investigation into Federal Reserve Chairman Jerome Powell has been “temporarily suspended,” Democratic officials said in a letter sent by the department Friday and first obtained by CNBC.

“Your announcement leaves the door wide open for you to reopen a criminal investigation against Chairman Powell — or future frivolous investigations into Powell or other Fed Chairs and future Fed Chairs — if it might be politically expedient for you to do so,” Sens. Elizabeth Warren, D-Mass., and Dick Durbin, D-Ill.

Pirro said in a statement on Friday that the Fed’s inspector general has been asked to investigate cost overruns in the ongoing stimulus program. Pirro did not specify who made the request. Last year, Powell asked the inspector general to look into the matter.

“I have instructed my office to close our investigation as the IG conducts this investigation,” said Pirro. “Know well, then, that I will not hesitate to restart the criminal investigation if the truth allows.”

Pirro’s office did not immediately respond to a request for comment.

The Fed declined early Friday to comment on Pirro’s decision. Powell said in January that he received a subpoena from Pirro’s office. He criticized them as excuses and said the Trump administration has displeased him by not cutting interest rates faster and deeper than the Fed believes is appropriate.

Prosecutors from Pirro’s office told a judge in March that they had no direct evidence of wrongdoing. The judge continued to dismiss Pirro’s subpoenas. Attorneys for the appeals told CNBC that the appeal will be difficult.

The senators’ letter investigates possible political motivations for the investigation. “In your opinion, what kinds of ‘facts’ would warrant reopening the investigation?” Warren and Durbin asked.

They asked Pirro if President Donald Trump or other administration officials had been notified of the decision to stop the investigation. They also request information on a request from the Fed’s inspector general.

Scott Alvarez, the Fed’s former general counsel, said earlier Friday that the agency was asking Pirro about similar issues.

“What facts can cause them to reopen the investigation when they first had no facts?” he said.

Warren said earlier Friday that he did not believe the Senate should move forward with confirming Kevin Warsh, Trump’s nominee to replace Powell. Warsh testified before the Senate Banking Committee on Tuesday. The Republican member of the committee, Sen. Thom Tillis of North Carolina, has pledged to block their nomination while the investigation continues.

Tillis has not commented on Pirro’s decision.