U.S. Federal Prosecutors Hint at Possible Reopening of Investigation into Fed Chair Powell

Pirro Says "I Want to See the Allegations for Myself"

On May 3 (local time), Janine Pirro, the U.S. federal prosecutor in Washington, D.C., hinted at the possibility of reopening the investigation into Jerome Powell, Chair of the Federal Reserve (Fed). This remark came immediately after Congress approved the confirmation hearing of Kevin Warsh as the next Fed Chair, on the condition that the federal prosecution's investigation into Powell would be halted.

On the same day, Prosecutor Pirro appeared on CNN's 'State of the Union' and was asked about the investigation into Chair Powell. She stated, "We are still litigating this matter," and added, "I want to see for myself what (the allegations) are. If there is nothing, Chair Powell will go home."

Jerome Powell, Fed Chairman, holding a press conference on interest rate cuts. Photo by Yonhap News Agency

The U.S. Department of Justice launched an investigation into Chair Powell over suspicions of excessive spending on the Fed headquarters renovation. Both inside and outside the Fed, there has been criticism that this was a politically motivated investigation against Chair Powell, who has resisted U.S. President Donald Trump's calls for interest rate cuts.

Within the Republican Party, there were also voices opposing Warsh's confirmation until the investigation into Chair Powell was suspended, which delayed the process of confirming the Fed Chair. Ultimately, after the Department of Justice and federal prosecutors announced the end of the investigation, the Senate passed Warsh's confirmation last week.

The New York Times pointed out that while there is a lack of evidence to substantiate any wrongdoing, Prosecutor Pirro's reluctance to close the case against Chair Powell suggests that the suspension of the investigation may only be temporary.

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