Pirro's Powell probe faces a difficult road to appeal, former prosecutors say

• Chief Judge James Boasberg quashed Pirro's subpoenas related to Fed building cost overruns, stating prosecutors presented 'no evidence whatsoever of fraud' and are still at the 'fact-finding stage'
• The D.C. Circuit Court generally disfavors piecemeal appeals and has not specifically ruled on whether quashed criminal subpoenas can be appealed, creating a 'brutally steep' legal path forward
• Powell's term as chair expires May 15 but he can remain as interim chair until a replacement is confirmed and stay as a board member through January 2028, potentially blocking Warsh indefinitely if the investigation continues

Summary: Powell Probe Appeal Faces Long Odds, Threatens Warsh Confirmation

Key Development:

U.S. Attorney Jeanine Pirro's criminal investigation into Federal Reserve Chair Jerome Powell has stalled after Chief Judge James Boasberg quashed her subpoenas. Pirro plans to appeal, but former federal prosecutors say her chances of success are slim, potentially delaying the confirmation of Fed Chair nominee Kevin Warsh.

Main Parties:

• Jerome Powell: Current Fed Chair whose term expires May 15; can remain as interim chair and board member through January 2028
• Jeanine Pirro: U.S. Attorney for D.C. pursuing investigation into Powell over Fed building renovation cost overruns
• Kevin Warsh: Nominee to replace Powell, whose confirmation is blocked by Sen. Tillis pending investigation closure
• Sen. Tillis (R-NC): Blocking Warsh's advancement until Powell investigation ends

Investigation Details:

The probe centers on cost overruns related to Fed building renovations and Powell's testimony about them. Judge Boasberg ruled prosecutors presented "no evidence whatsoever of fraud." Prosecutors admitted at a March 3 hearing they don't yet know if Powell engaged in improper conduct.

Legal Challenges:

• Appeals courts generally disfavor piecemeal pretrial appeals
• D.C. Circuit hasn't specifically ruled on appealing quashed criminal subpoenas
• Legal experts warn an unsuccessful appeal could create unfavorable precedent for prosecutors
• Political motivations may undermine DOJ credibility with judges

Market Implications:

The Senate Banking Committee hearing for Warsh is scheduled for April 16. If the investigation drags on, Powell could remain indefinitely, maintaining current monetary policy. A swift resolution could enable Warsh's confirmation and potential interest rate cuts.