U.S. Attorney Claims Federal Reserve Ignored Outreach on Cost Overruns and Powell Testimony

U.S. Attorney for the District of Columbia Jeanine Pirro stated that the Justice Department’s investigation into the Federal Reserve would not have occurred “if they had just responded to our outreach.”

Pirro made the remarks in a post on X, explaining that her office repeatedly contacted the Federal Reserve regarding alleged cost overruns and Chairman Jerome Powell’s congressional testimony but received no response. She emphasized that legal action was necessary because the Fed ignored multiple attempts at communication.

“The United States Attorney’s Office contacted the Federal Reserve on multiple occasions to discuss cost overruns and the chairman’s congressional testimony, but were ignored,” Pirro wrote. “None of this would have happened if they had just responded to our outreach.”

The comments follow a recent statement by Powell that the Justice Department served the Federal Reserve with grand jury subpoenas tied to his June testimony before the Senate Banking Committee, where he addressed estimated $2.5 billion renovations for the Fed’s Washington headquarters.

Powell suggested the action was part of broader political pressure on the central bank, raising questions about whether monetary policy would be set by “evidence and economic conditions” or “political pressure or intimidation.”

Pirro framed the matter as basic accountability, stating that ordinary Americans and small businesses face similar consequences when projects go over budget. “This office makes decisions based on the merits, nothing more and nothing less,” she wrote. “We agree with the chairman of the Federal Reserve that no one is above the law, and that is why we expect his full cooperation.”

President Donald Trump, who appointed Powell in 2017, told NBC News he was unaware of the investigation but criticized Powell’s performance, calling him “certainly not very good at the Fed, and he’s not very good at building buildings.” Trump has previously criticized Powell over interest rate policy.

Some Republican lawmakers raised concerns about the probe, including Senators Thom Tillis (R-N.C.) and Lisa Murkowski (R-Alaska), who questioned the Federal Reserve’s independence. Other lawmakers and economic figures also criticized the Justice Department’s move.

Pirro maintained that the Fed is not entitled to ignore prosecutors and then complain when subpoenas arrive. “In her view, simple responsiveness could have avoided escalation,” she said. “Americans deserve straight answers when powerful officials and multibillion-dollar projects are involved.”