Democratic Senators Challenge DOJ's 'Paused' Criminal Probe into Fed Chair Powell

U.S. Attorney Jeanine Pirro has announced a temporary pause in the criminal investigation into Federal Reserve Chair Jerome Powell, though she maintained that the probe could be reopened if new evidence emerges. The pause follows a request for the Federal Reserve's inspector general to investigate cost overruns associated with an ongoing renovation project. While Powell himself had previously requested the inspector general's review, Pirro's office had issued subpoenas that were later quashed by a judge who noted a lack of specific evidence regarding wrongdoing. Powell has previously characterized the legal pressure as a pretext, suggesting the Trump administration was dissatisfied with the pace and depth of interest rate cuts. Senators Elizabeth Warren and Dick Durbin expressed concern in a letter to the DOJ, suggesting the investigation's status is merely 'temporarily paused' to allow for political expediency. They questioned what specific 'facts' would justify a relaunch of the probe and whether the White House was informed of the decision to halt the inquiry. The legal battle coincides with the nomination of Kevin Warsh to replace Powell. While Senator Warren supports moving forward with the confirmation, Senator Thom Tillis has pledged to block Warsh's nomination as long as the investigation remains active. The situation highlights ongoing tensions regarding the independence of the U.S. central bank from executive branch influence.