Fed’s Failure to Respond to DOJ Inquiries Prompted Powell Probe: PirroFed’s Failure to Respond to DOJ Inquiries Prompted Powell Probe: Pirro

‘The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s,’ said the U.S. attorney.

Jeanine Pirro, U.S. attorney for the District of Columbia, said on Jan. 13 that Federal Reserve Chair Jerome Powell could have avoided a Department of Justice probe if the central bank “had just responded to our outreach.”

In a Jan. 13 statement on X, Pirro said the U.S. Attorney’s Office had repeatedly contacted the Fed about cost overruns and Powell’s June testimony before the Senate Banking Committee.

Those inquiries, she added, “were ignored, necessitating the use of legal process—which is not a threat.”

“The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s,” Pirro stated. “None of this would have happened if they had just responded to our outreach. 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.”

Powell revealed over the weekend that the Justice Department had served grand jury subpoenas to the Fed on Jan. 9 and threatened a criminal indictment.

The probe by federal prosecutors, according to Powell, related to his congressional testimony this past summer when he spoke to lawmakers about $2.5 billion renovations to the central bank headquarters.

In his Jan. 11 video statement, Powell described them as “pretexts” and that they should be viewed “in the broader text of the administration’s threats and ongoing pressure.”

President Donald Trump said he didn’t know about the investigation into Powell.

“He’s billions of dollars over budget,” the president told reporters before boarding Air Force One on Jan. 13. “So, he either is incompetent, or he is crooked. I don’t know what he is, but he certainly doesn’t do a very good job.”

When the comprehensive overhaul was approved in 2017, the budget was set at $1.9 billion.

It was later adjusted to $2.5 billion due to rising labor and material costs, as well as asbestos and soil contamination, and extended construction timelines.

This has become one of the most expensive buildings in Washington’s history, says National Economic Council Director Kevin Hassett, and Powell should welcome transparency.

“If I were Fed chair, I would want them to do that. I think that it’s really important to understand where the taxpayer money goes and understand why it goes this way or that,” he said on Jan. 12.

Former Fed Chairs Ben Bernanke, Alan Greenspan, and Janet Yellen co-signed a statement—along with 13 other economic officials—defending Powell and slamming “prosecutorial attacks.”

Federal Reserve Chair Jerome Powell arrives to speak at a news conference following the Federal Open Market Committee meeting in Washington on Oct. 29, 2025. Madalina Kilroy

“This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly,” the joint statement read.

The European Central Bank and other institutions also came out in support of Powell.

The Federal Reserve will convene its next two-day monetary policy meeting on Jan. 27 and 28. It is widely expected by investors that officials will leave rates unchanged.