Pirro appears to drop plans to appeal criminal investigation of Fed Chair Powell

• Pirro's appeal was due Monday, but she now plans a 'motion to vacate' instead, effectively dropping her legal demand for Fed evidence on building renovation cost overruns
• Judge Boasberg previously ruled that 'a mountain of evidence' suggested the subpoenas were intended to harass Powell into cutting interest rates or resigning at President Trump's behest
• Pirro maintains she may reopen the investigation pending a report from Fed Inspector General Michael Horowitz, and has not committed to ending it even if no wrongdoing is found

Summary

Key Development: U.S. Attorney for Washington D.C. Jeanine Pirro appears to be abandoning her planned appeal in the criminal investigation of Federal Reserve Chairman Jerome Powell, facing a Monday deadline. Instead, she indicated she will file a "motion to vacate" the adverse court ruling.

Background: Chief Judge James Boasberg of the D.C. District Court previously quashed Pirro's subpoenas seeking evidence from the Fed related to building renovation cost overruns. Boasberg ruled that the investigation lacked specific evidence of wrongdoing and appeared designed to pressure Powell over his refusal to comply with President Trump's demands for rapid interest rate cuts. The judge wrote that "a mountain of evidence suggests" the subpoenas were intended to harass the Fed chair.

Legal Strategy Shift: By switching from an appeal to a motion to vacate, Pirro seems to be dropping her demand for Fed evidence. However, legal experts question this approach. Former Assistant U.S. Attorney Sean P. Murphy noted that Pirro likely lacks standing to "erase the record of a DOJ loss" in this manner. Appeals typically require Justice Department approval, though it's unclear if Pirro obtained such authorization.

Market Implications: The uncertainty surrounding this investigation has affected Fed leadership stability. Powell stated Wednesday he would remain on the Fed board after his chairmanship term expires until convinced the threat to Fed independence is resolved. Pirro has not committed to ending the investigation and is awaiting a report from Fed Inspector General Michael Horowitz, leaving potential for future disruption to monetary policy leadership.