On Friday, a paused Justice Department probe into Federal Reserve Chair Jerome Powell drew scrutiny from Democratic lawmakers who warned it could be revived at any time.
DOJ Steps Back — But Doesn’t Shut The Door
In a letter to U.S. Attorney for the District of Columbia Jeanine Pirro, Sens. Elizabeth Warren (D-Mass.) and Dick Durbin (D-Ill.) cautioned that the decision “leaves the door wide open for you to relaunch the criminal probe,” CNBC reported.
Pirro said her office is stepping back as the Federal Reserve’s inspector general reviews cost overruns tied to an ongoing renovation project. However, she noted that prosecutors could revisit the case if warranted.
“I will not hesitate to restart a criminal investigation should the facts warrant doing so,” Pirro said.
Lawmakers Question Motives Behind Powell Probe
Warren and Durbin raised concerns that the investigation could be used as a political tool.
“Your announcement leaves the door wide open … should it once again become politically expedient,” the senators wrote, pressing for clarity on what evidence would justify reopening the case.
They also asked whether President Donald Trump or other administration officials were involved in the decision to pause the investigation.
Lack Of Evidence And Legal Setbacks
The probe has already faced hurdles. Prosecutors previously acknowledged in court that they lacked specific evidence of wrongdoing, and a judge moved to quash subpoenas issued to Powell.
The investigation centers on rising costs tied to a Federal Reserve renovation project — an issue Powell himself had referred to the inspector general for review last year.
Powell has criticized the probe, calling it a pretext and suggesting it may be tied to disagreements over monetary policy, particularly pressure to cut interest rates more aggressively.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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