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WASHINGTON — The U.S. Department of Justice has decided to cease its criminal examination of Federal Reserve Chair Jerome Powell regarding the expensive renovations at the Fed’s headquarters in Washington, D.C.
On Friday, DC U.S. Attorney Jeanine Pirro announced that the Federal Reserve’s inspector general will now take charge of investigating the cost overruns, which have burdened taxpayers with billions of dollars in expenses.
“The inspector general possesses the authority to ensure the Federal Reserve is accountable to American taxpayers,” Pirro stated. “I anticipate a thorough report soon and believe its findings will address the concerns that prompted our office to issue subpoenas initially.”
She continued, “Therefore, I have instructed my office to conclude our investigation as the inspector general proceeds with this review,” while also cautioning that they “will not hesitate to reinstate a criminal probe if the situation justifies it.”
Back in January, Pirro’s office issued subpoenas to Powell concerning his testimony to Congress about the $2.5 billion refurbishment project at the Federal Reserve.
Those subpoenas were blocked by a federal judge last month.
DC’s top federal prosecutor launched the probe in January in response to Powell’s denials before the Senate Banking Committee last year that the lavish upgrades were pushing the project over budget.
“There’s no VIP dining room, there’s no new marble. There are no special elevators,” Powell testified. “There are no new water features, there’s no beehives, and there’s no roof terrace gardens.”
In a video statement on Jan. 11 revealing the probe, Powell said: “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.”