U.S. Attorney Pirro Drops Criminal Probe of Federal Reserve Chair Powell

S. , headquarters. Pirro had stated on Wednesday that the investigation would continue and that her office would appeal a recent court decision. District Court for the District of Columbia quashed two grand jury subpoenas related to the probe. The subpoenas sought information on the renovation, which had exceeded its budget, and Powell's statements during the committee hearing.

Boasberg did not provide further details on his reasoning in the publicly available information.

During the June 25 hearing, Powell addressed questions about features in the renovation, including reported amenities such as rooftop garden terraces, water features, elevators to a VIP dining suite, white marble, rooftop beehives, and a private art collection.

Powell stated that there was no VIP dining room, no new marble beyond replacements for damaged original material, no special elevators, no new water features, no beehives, and no roof terrace gardens. He described reports of these elements as inaccurate or not part of the current plan.

In a July 17 letter to Office of Management and Budget Director Russell Vought, Powell provided additional explanations. He noted that a mentioned garden terrace referred to a ground-level lawn serving as a green roof for stormwater management. He confirmed that historic multi-use rooms were being renovated but not as new VIP dining areas, and that original elevators were being rehabilitated with minor extensions for accessibility.

Powell also explained that initial designs included new water features, but these were eliminated, with original fountains being restored instead. For marble, he stated that original exterior marble was being salvaged and reinstalled, with new domestic marble from Georgia used where necessary to meet preservation guidelines.

Sen. ) stated that he did not believe there was criminal intent and had vowed to block confirmation of Kevin Warsh, nominated to replace Powell, until the investigation ended. Sen. ), the committee chairman, said Powell was inept but that incompetence is not a criminal act.

Sen. ) agreed the Federal Reserve should remain independent and that any issues with the renovation should be addressed through congressional oversight, not criminal proceedings. Sen. ) criticized cost overruns but said he did not believe Powell was a criminal.

Sen. Mike Crapo (R-Idaho) called for quick resolution to maintain the central bank's independence from political influence. Sen. ) said he would be shocked if Powell had done anything wrong. Sen. ) indicated that applying a criminal statute seemed like a heavy lift and that she did not see criminal intent, according to a Reuters report cited in the source material.

The investigation was linked to allegations that Powell violated 18 USC 1001 by making false statements during congressional testimony. Powell's explanations addressed perceived discrepancies with 2021 plans approved by the National Capital Planning Commission, noting that some elements had been abandoned or mischaracterized.

Pirro's decision to drop the probe came after Boasberg invited her office to provide ex parte evidence, but no such evidence was submitted. The source material also references other dismissed cases, including indictments against former FBI Director James Comey and New York Attorney General Letitia James, though details on those were not elaborated.