The U.S. Attorney General for the District of Columbia has halted her criminal probe into massive cost overruns tied to the renovation of the Federal Reserves Washington headquarters, shifting scrutiny to the central banks own watchdog.
According to Breitbart, Jeanine Pirro announced that the Federal Reserves Inspector General will now examine the ballooning construction expenses, which have climbed into the billions and ultimately fall on taxpayers. This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overrunsin the billions of dollarsthat have been borne by taxpayers, Pirro stated in a post on X. Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry.
Pirro previously convened a grand jury and issued subpoenas to the Fed after the central bank allegedly stonewalled her offices requests for information about the project. Fed chairman Jerome Powell responded with a video accusing the Trump administration of using the probe as leverage to force lower interest rates, a policy shift President Trump has urged for months.
Powell, however, produced no evidence to substantiate his charge, and President Trump has maintained he had no prior knowledge of Pirros investigation before Powells public complaint. The dispute has unfolded against the backdrop of a central bank that has resisted calls for rate cuts despite persistent concerns from conservatives about inflation, growth, and the burden on working families.
The investigation also complicated the confirmation of Kevin Warsh as the next Fed chair, a move widely supported by conservatives seeking a course correction at the central bank. Senator Thom Tillis of North Carolina, while backing Warshs nomination, vowed not to advance it until Pirros probe was dropped and reiterated that stance during a committee hearing this week.
Earlier this week, Pirro insisted her inquiry would continue and that she would not allow political pressure to shape prosecutorial decisions. Her decision to step aside in favor of the Inspector General now places responsibility squarely on the Feds internal oversight apparatus, raising questions about transparency at an institution that has long operated with sweeping autonomy.
Powell, whose term as chairman ends May 15 though his governorship runs until 2028, has said he would not leave the Fed while the investigation remained active. He has also declared he intends to stay on as chair if no successor is confirmed, despite citing no legal authority for effectively squatting in the role, a stance legal experts say the Trump administration could challenge.
Pirro signaled she is not relinquishing her authority permanently and may yet return to the case if the Inspector Generals review proves inadequate. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so, Pirro said.
It remains uncertain whether Pirros move will satisfy Tillis or Powell, both of whom have demanded the investigation be dropped with no possibility of revival. Their insistence on a clean break underscores the broader struggle over accountability at the Fed, where unelected officials wield enormous power over the economy while often resisting the kind of scrutiny routinely applied to other arms of government.
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