US Attorney Jeanine Pirro is defending the Fed’s investigation into Powell’s claims
The Chairman of the Federal Reserve, Jerome Powell, confirmed that the central bank has been served by the Department of Justice regarding the allegations related to the testimony of the congress about the renovation of the bank’s headquarters. (Credit: Federal Reserve)
U.S. Attorney for the District of Columbia Jeanine Pirro said Monday that the Federal Reserve has repeatedly failed to respond to her office about allegations of cost overruns and testimony by Chairman Jerome Powell, prompting prosecutors to begin legal proceedings that she said are “not dangerous.”
“The word ‘case’ has come out of Mr. Powell’s mouth, no one else. None of this would have happened if they had just responded to our outreach,” said Pirro.
“This office makes decisions based on what is appropriate, nothing more and nothing less. We agree with the chairman of the Federal Reserve that no one is above the law, which is why we expect his full cooperation.”
A person familiar with the situation told Fox News Digital that the Federal Reserve received two emails over the winter holidays that did not convey a sense of urgency and did not mention a criminal investigation, before it received the subpoena.
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Federal Reserve Chairman Jerome Powell arrives at the US Federal Reserve in Washington on Jan. 13, 2026. (Nathan Howard/Reuters/Reuters)
In a video statement released Sunday, Powell said the Justice Department had subpoenaed the Federal Reserve on Friday, describing the move as a threat of criminal indictment related to his June testimony before the Senate Banking Committee.
The testimony focused in part on a multi-year, $2.5 billion plan to renovate two Federal Reserve office buildings: the Marriner S. Eccles Federal Reserve Board Building and the 1951 Constitution Avenue Building.
Powell said the Justice Department’s “new threat” is an “excuse” unrelated to his Senate testimony or the recovery project.
“The threat of criminal charges is the result of the Federal Reserve setting interest rates based on our best assessment of what is in the best interest of the public, rather than following the President’s preferences,” he said. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be guided by political pressure or intimidation.”
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A worker enters the construction site of the Federal Reserve headquarters in Washington, DC, on Jan. 12, 2026. (Kevin Lamarque / Reuters / Reuters)
Powell has resisted repeated calls from President Donald Trump to cut interest rates aggressively, despite the Federal Reserve cutting rates three times by late 2025.
Rep. Anna Paulina Luna, R-Fla., referred Powell to the Justice Department in July, accusing him in a letter to Attorney General Pam Bondi, of misrepresenting the scope and features of the Federal Reserve stimulus project and making false statements to officials about inflation.
He said the renovation cost is $700 million over budget.
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The Federal Reserve said on its website that the cost increases were driven by design changes following consultations with review agencies, higher-than-expected materials and labor costs, and unforeseen circumstances such as additional asbestos and toxic soil contamination.
The ‘Big Money Show’ panel comes in as federal prosecutors investigate Fed Chairman Jerome Powell over a $2.5 billion headquarters overhaul, sparking market volatility and renewed debate about the Fed’s independence.
Several Republican lawmakers, including Sens. Thom Tillis of North Carolina and Lisa Murkowski of Alaska, questioned the Justice Department’s motive for removing the grand jury from the Federal Reserve, raising concerns that the move could undermine the central bank’s independence.
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“If there was any doubt left that the advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, it should not be there now. Now the independence and credibility of the Department of Justice is at stake,” said Tillis.
He added that he would oppose the confirmation of any Fed nominee, including the future position of Federal Reserve chairman, until the legal issue is “fully resolved.”
