Pirro says DOJ won't drop Fed probe, will appeal judge's order blocking Powell subpoenas

• Federal Judge James Boasberg blocked the subpoenas last month, citing a 'mountain of evidence' suggesting they were issued to pressure the Fed's board, raising concerns about central bank independence from executive interference
• Senator Thom Tillis (R-N.C.) has vowed to block Warsh's nomination in the Senate Banking Committee until the DOJ drops the investigation of Powell, whose term expires May 15
• The investigation centers on alleged cost overruns exceeding $1 billion on Fed building renovations, though Trump has overstated the actual costs, claiming they were 'close to $4 billion' when they are roughly a fraction of that amount

Summary

Key Developments:

U.S. Attorney Jeanine Pirro announced Wednesday she will continue her controversial DOJ investigation into the Federal Reserve and appeal a federal judge's ruling that blocked grand jury subpoenas. The probe focuses on alleged cost overruns exceeding $1 billion related to renovations of two historic Federal Reserve buildings in Washington.

Major Figures:

• Jeanine Pirro: Leading the investigation, vowing to proceed despite legal setbacks
• Jerome Powell: Current Fed Chairman, claims he's being targeted for resisting President Trump's demands to lower interest rates
• Kevin Warsh: Trump's nominee to replace Powell; confirmation endangered by this probe
• Sen. Thom Tillis (R-N.C.): Banking Committee member blocking Warsh's nomination until DOJ drops investigation
• Judge James Boasberg: Blocked subpoenas, citing "mountain of evidence" suggesting they were issued to pressure the Fed

Timeline:

• Powell's term expires May 15
• Government has until May 4 to file appeal notice
• Senate Banking Committee could vote on Warsh's nomination week of May 11
• Senate out week of May 4

Market Implications:

The investigation threatens Federal Reserve independence from executive branch interference, raising significant concerns about central bank autonomy. The standoff jeopardizes leadership transition at the Fed during a critical period, creating uncertainty around monetary policy direction.

Key Quote:

Pirro defended her position: "The idea that a judge can stand at the door of a grand jury and tell a prosecutor, 'You're not allowed to go in'... is an order that we think must be appealed."