WASHINGTON — The Department of Justice is dropping its criminal investigation of Federal Reserve Chair Jerome Powell over costly building renovations at its headquarters in the nation’s capital.
DC US Attorney Jeanine Pirro announced Friday that the Fed’s inspector general instead “has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers.”
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said. “I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas.”
“Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry,” she added, threatening to “not hesitate to restart a criminal investigation should the facts warrant doing so.”
In January, Pirro’s office fired off subpoenas to Powell over statements he made to Congress about the $2.5 billion renovations at the Fed.
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.”
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