Prosecutor admits government lacks evidence of misconduct by Fed chair

Source: Washington Post

March 24, 2026 at 2:58 p.m. EDT


A top deputy to U.S. Attorney Jeanine Pirro acknowledged in a closed-door hearing this month that the Justice Department did not have evidence of wrongdoing in its criminal investigation of the Federal Reserve over the cost of its building renovations, according to a transcript of the court proceedings.

The prosecutor’s admission, which has not been previously reported, undercuts President Donald Trump’s claim that “there is criminality” in the $2.5 billion overhaul of the Fed’s headquarters overlooking the National Mall.

Attorneys for the Fed and the U.S. attorney’s office in D.C. battled over the legality of two grand jury subpoenas at the center of the investigation during a sealed hearing March 3. A transcript of the proceedings was later unsealed. Both subpoenas were quashed this month by a federal judge, who described them as an illegal effort by the Trump administration to pressure Fed Chair Jerome H. Powell to lower interest rates or resign from the independent central bank.

Pirro, the top federal prosecutor in D.C. and a Trump ally, opened the inquiry after Powell gave brief testimony on the renovation’s costs during a congressional hearing last year. The criminal investigation followed years of criticism from Trump over the Fed’s handling of monetary policy and his public demands that the Justice Department target his perceived political foes. Prosecutors are weighing whether the cost overruns amount to fraud and whether Powell gave false testimony to the Senate Banking Committee.

Read more: https://www.washingtonpost.com/national-security/2026/03/24/powell-fed-chair-subpoena-prosecutor/