Pirro keeps pressure on Fed's Powell despite dropping probe

• Pirro stated she would close the investigation while the Fed's Inspector General reviews renovation costs, but reserved the right to reopen it 'should the facts warrant,' and Trump suggested the probe continues despite her public statements
• Powell received assurances from Pirro's office that any appeal would not seek to restart the investigation or issue new subpoenas, though Acting Attorney General Todd Blanche left open the possibility of reopening based on the inspector general's findings
• Legal experts suggest Pirro may be overstating the judge's constraints on her investigative authority, and pursuing the appeal could backfire by establishing sharper limits on politically motivated investigations

Summary: Fed Chair Powell Under Continued Pressure Amid Legal Battle

U.S. Attorney for the District of Columbia Jeanine Pirro faces a Monday deadline to appeal a court decision blocking her subpoenas into Federal Reserve building renovation costs, despite announcing she closed her investigation into outgoing Fed Chair Jerome Powell on April 24. The legal maneuvering has significant implications for the Fed's independence and leadership transition.

Key Developments:

• District of Columbia Chief Judge James Boasberg quashed Pirro's subpoenas to the Fed
• Pirro plans to appeal while maintaining she can reopen the criminal investigation "should the facts warrant"
• President Trump contradicted Pirro's closure claim, stating "It's not dropped" on April 25
• Powell intends to remain on the Fed board after his chairmanship expires to monitor the situation

Central Issues:

The investigation centers on alleged "billions of dollars in cost overruns" on Fed renovation projects, though no evidence of wrongdoing has emerged after six months. Pirro argues the appeal concerns prosecutorial authority broadly, claiming Judge Boasberg is improperly limiting her investigative powers.

Market and Political Implications:

Powell's tenure uncertainty creates ongoing tension between the Trump administration and the Fed, potentially unsettling markets. The outcome will determine when Trump can appoint a new Fed governor to replace Powell. Senator confirmation of Fed chair nominee was contingent on understanding the probe was ending.

Legal Concerns:

Former Assistant U.S. Attorney Sean Murphy suggests Pirro may be overstating judicial constraints and risks setting unfavorable precedent on politically-motivated investigations. Acting Attorney General Todd Blanche left open possibilities for reopening the investigation based on the Fed Inspector General's findings.

The situation represents a critical test of Federal Reserve independence and presidential influence over the central bank.