US Attorney Jeanine Pirro Supports Federal Investigation Following Powell’s Statements
Federal Reserve Chairman Jerome Powell confirmed that the central bank had been served by the Justice Department regarding allegations tied to his congressional testimony about the renovation of the bank’s headquarters. (Credit: Federal Reserve)
U.S. Attorney for the District of Columbia, Jeanine Pirro, announced on Monday that the Federal Reserve had repeatedly failed to respond to her office’s inquiries concerning alleged cost overruns and Powell’s congressional testimony. This lack of communication prompted prosecutors to initiate a legal process that Pirro emphasized “is not a threat.”
“The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s. None of this would have happened if they had just responded to our outreach,” Pirro stated.
She further asserted, “This office makes decisions based on the merits, nothing more and nothing less. We agree with the chairman of the Federal Reserve that no one is above the law, and that is why we expect his full cooperation.”
A source familiar with the situation informed Fox News Digital that the Federal Reserve had received two emails over the winter holidays, which conveyed no urgency and did not mention a criminal investigation, prior to receiving a subpoena.
SUPREME COURT KEEPS FED’S LISA COOK IN ROLE FOR NOW, AGREES TO REVIEW CASE
Federal Reserve Chair Jerome Powell arrives at the U.S. Federal Reserve in Washington on Jan. 13, 2026. (Nathan Howard/Reuters / Reuters)
In a video statement released on Sunday, Powell revealed that the Justice Department served the Federal Reserve with grand jury subpoenas on Friday, characterizing the action as a threat of criminal indictment related to his June testimony before the Senate Banking Committee.
This testimony addressed a multi-year, $2.5 billion project aimed at renovating two Federal Reserve office buildings: the Marriner S. Eccles Federal Reserve Board Building and the 1951 Constitution Avenue Building.
Powell contended that the Justice Department’s “new threat” was a “pretext” unrelated to his Senate testimony or the renovation project.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” he stated. “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 directed by political pressure or intimidation.”
THE ECONOMIC POLICIES SHAPING TRUMP’S RETURN TO THE WHITE HOUSE
A worker enters the construction site of the Federal Reserve headquarters in Washington, D.C., on Jan. 12, 2026. (Kevin Lamarque/Reuters / Reuters)
Powell has faced ongoing pressure from President Donald Trump to cut interest rates more aggressively, although the Federal Reserve did lower rates three times in late 2025.
Rep. Anna Paulina Luna, R-Fla., referred Powell to the Justice Department in July, alleging in a letter to Attorney General Pam Bondi that he misrepresented the scope and features of the Federal Reserve’s renovation project and made false statements regarding its escalating price tag.
She claimed that the renovation costs had exceeded the budget by $700 million.
BESSENT RULES OUT FED CHAIR ROLE, EXPLAINS WHAT LURED SAUDIS’ $1T INVESTMENT DEAL
The Federal Reserve stated 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 conditions such as additional asbestos and toxic soil contamination.
‘The Big Money Show’ panel weighs in as federal prosecutors investigate Fed Chair Jerome Powell over a $2.5 billion headquarters renovation, sparking market volatility and fresh debate over Fed independence.
Several Republican lawmakers, including Senators Thom Tillis of North Carolina and Lisa Murkowski of Alaska, have raised concerns regarding the Justice Department’s motives for issuing grand jury subpoenas to the Federal Reserve, suggesting that such actions could undermine the central bank’s independence.
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“If there were any remaining doubt whether advisors within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that are in question,” Tillis remarked.
He also indicated that he would oppose the confirmation of any nominee for the Fed, including the upcoming vacancy for the Federal Reserve chair, until the legal matter is “fully resolved.”
Federal Reserve Chairman Jerome Powell confirmed that the central bank had been served by the Justice Department regarding allegations tied to his congressional testimony about the renovation of the bank’s headquarters. (Credit: Federal Reserve)
U.S. Attorney for the District of Columbia, Jeanine Pirro, announced on Monday that the Federal Reserve had repeatedly failed to respond to her office’s inquiries concerning alleged cost overruns and Powell’s congressional testimony. This lack of communication prompted prosecutors to initiate a legal process that Pirro emphasized “is not a threat.”
“The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s. None of this would have happened if they had just responded to our outreach,” Pirro stated.
She further asserted, “This office makes decisions based on the merits, nothing more and nothing less. We agree with the chairman of the Federal Reserve that no one is above the law, and that is why we expect his full cooperation.”
A source familiar with the situation informed Fox News Digital that the Federal Reserve had received two emails over the winter holidays, which conveyed no urgency and did not mention a criminal investigation, prior to receiving a subpoena.
SUPREME COURT KEEPS FED’S LISA COOK IN ROLE FOR NOW, AGREES TO REVIEW CASE
Federal Reserve Chair Jerome Powell arrives at the U.S. Federal Reserve in Washington on Jan. 13, 2026. (Nathan Howard/Reuters / Reuters)
In a video statement released on Sunday, Powell revealed that the Justice Department served the Federal Reserve with grand jury subpoenas on Friday, characterizing the action as a threat of criminal indictment related to his June testimony before the Senate Banking Committee.
This testimony addressed a multi-year, $2.5 billion project aimed at renovating two Federal Reserve office buildings: the Marriner S. Eccles Federal Reserve Board Building and the 1951 Constitution Avenue Building.
Powell contended that the Justice Department’s “new threat” was a “pretext” unrelated to his Senate testimony or the renovation project.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” he stated. “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 directed by political pressure or intimidation.”
THE ECONOMIC POLICIES SHAPING TRUMP’S RETURN TO THE WHITE HOUSE
A worker enters the construction site of the Federal Reserve headquarters in Washington, D.C., on Jan. 12, 2026. (Kevin Lamarque/Reuters / Reuters)
Powell has faced ongoing pressure from President Donald Trump to cut interest rates more aggressively, although the Federal Reserve did lower rates three times in late 2025.
Rep. Anna Paulina Luna, R-Fla., referred Powell to the Justice Department in July, alleging in a letter to Attorney General Pam Bondi that he misrepresented the scope and features of the Federal Reserve’s renovation project and made false statements regarding its escalating price tag.
She claimed that the renovation costs had exceeded the budget by $700 million.
BESSENT RULES OUT FED CHAIR ROLE, EXPLAINS WHAT LURED SAUDIS’ $1T INVESTMENT DEAL
The Federal Reserve stated 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 conditions such as additional asbestos and toxic soil contamination.
‘The Big Money Show’ panel weighs in as federal prosecutors investigate Fed Chair Jerome Powell over a $2.5 billion headquarters renovation, sparking market volatility and fresh debate over Fed independence.
Several Republican lawmakers, including Senators Thom Tillis of North Carolina and Lisa Murkowski of Alaska, have raised concerns regarding the Justice Department’s motives for issuing grand jury subpoenas to the Federal Reserve, suggesting that such actions could undermine the central bank’s independence.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
“If there were any remaining doubt whether advisors within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that are in question,” Tillis remarked.
He also indicated that he would oppose the confirmation of any nominee for the Fed, including the upcoming vacancy for the Federal Reserve chair, until the legal matter is “fully resolved.”
