Pirro defends investigation into Fed Chair Jerome Powell amid backlash
U.S. Attorney Jeanine Pirro defended her office’s investigation into Federal Reserve Chair Jerome Powell in a message Monday night, claiming the Fed “ignored” requests for information about “cost overruns” and Powell’s testimony, “requiring the use of legal process.”
“The word ‘indictment’ came out of Mr. Powell’s mouth, not anyone else’s. None of this would have happened if they had simply responded to our communication,” wrote Pirro, the U.S. attorney for the District of Columbia. “This office makes decisions based on merit, nothing more, nothing less. 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.”
Powell confirmed the investigation in a rare public video message Sunday night where he said the Justice Department threatened a “criminal indictment” through grand jury subpoenas. The announcement sparked negative reactions from former Federal Reserve and Treasury officials as well as current members of Congress, including those in President Donald Trump’s own party.
Republican Sen. Thom Tillis, who sits on the Senate Banking Committee, called the Justice Department investigation “another example of amateur hour” when asked by ABC News on Monday what his message is to Trump and the president’s advisers.
“I’ve said repeatedly that I rarely disagree with the president, but I don’t agree with the bad advice he’s been given,” Tillis said. “He has said publicly that he was not aware of this.”
A bipartisan group of top economic officials issued a blistering statement Monday calling the investigation an “unprecedented attempt to use judicial attacks to undermine” the central bank’s independence.
“This is how monetary policy is done in emerging markets with weak institutions, with very negative consequences for inflation and the functioning of their economies in general. It has no place in the United States, whose greatest strength is the rule of law, which is the basis of our economic success,” read the statement by Alan Greenspan, Ben Bernanke, Janet Yellen, Tim Geithner, Jacob Lew, Hank Paulson and others.
The investigation is related to Powell’s testimony last June about the multi-year renovation of the Federal Reserve buildings in Washington. But Trump has made Powell a frequent target of his attacks and pressure to lower interest rates.
Federal Reserve Chairman Jerome Powell holds a news conference following a two-day meeting of the Federal Open Market Committee at the U.S. Federal Reserve in Washington, Dec. 10, 2025.
Kevin Lamarque/Reuters
Trump denied any involvement in the criminal investigation during a brief interview with NBC News on Sunday night, but continued to criticize Powell’s leadership. White House press secretary Karoline Leavitt said “no” on Monday. Trump did not order the Justice Department to investigate, but argued that the president has “every right to criticize the chairman of the Federal Reserve.”
Mary Bruce, ABC News’ chief White House correspondent, asked Leavitt: “Does the president believe the Federal Reserve should operate independently of him?”
“The president has made it quite clear that he thinks Jerome Powell is bad at his job. And the president has made it pretty clear, as have many economists, by the way, that interest rates should be lowered and they should have been lowered a long time ago,” he responded.
“But do you believe in the independence of the Federal Reserve?” Bruce pressed.
“He has done it and said it many times.” Leavitt said.
White House National Economic Council Director Kevin Hassett, who is on Trump’s short list to be the next Federal Reserve chair, said time will tell whether the investigation is a pretext to fire Powell over interest rates.
“Well, in time we’ll find out if this seems like a pretext.” Hassett, who denied being involved in the investigation, told CNBC in an appearance Monday. “But right now we have a building that has dramatic cost overruns and, you know, plans for the buildings that seem inconsistent with the testimony. But, again, I’m not a Department of Justice person. I hope everything turns out well.”
Tillis said he will oppose the confirmation of any Trump nominee to the Federal Reserve until legal issues related to Powell are resolved, which could make it difficult for a nominee to leave the committee.
“If there was any doubt about whether advisors within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that is in question,” Tillis said in a statement Sunday night.
Senator Thom Tillis arrives to attend a briefing for senators on the situation in Venezuela, on Capitol Hill in Washington, DC, on January 7, 2026.
Evelyn Hockstein/Reuters
Republican Sen. Lisa Murkowski, posting on X on Monday, said Tillis is “right to block any Fed nominee.”
“After speaking with Chairman Powell this morning, it is clear that the administration’s investigation is nothing more than an attempt at coercion. If the Justice Department believes that an investigation into Chairman Powell is warranted due to project cost overruns, which is not unusual, then Congress needs to investigate the Justice Department. There is too much at stake to look the other way: if the Federal Reserve loses its independence, the stability of our markets and the broader economy will be affected,” Murkowski posted on X.
House Financial Services Chairman Rep. French Hill, a Republican, said Filing criminal charges against Powell is “an unnecessary distraction.” Sen. Kevin Cramer, another Republican on the Senate Banking Committee, said he does not believe Powell is a criminal and hopes the criminal matter will be resolved soon.
House Speaker Mike Johnson told reporters Monday that “if the investigation is warranted, then they’re going to have to do it.” Asked if he thought the investigation was justified, Johnson said: “I haven’t reviewed his testimony, so I’m not sure, but that’s not really my path.”
A spokesman for Attorney General Pam Bondi said Bondi “has instructed his U.S. attorneys to prioritize investigating any abuse of taxpayer dollars.” Powell said in his statement that the investigation was prompted by Trump’s months-long pressure campaign on him to lower interest rates.
Sen. Elizabeth Warren, D-Mass., speaks about the future of the Democratic Party during her speech as the National Press Club’s Headliners Newsmaker at the National Press Club in Washington, Jan. 12, 2026.
Bill Clark/CQ Roll Pass via AP
Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee, criticized Trump as a “wannabe dictator” for his campaign against Powell.
“Acting like the would-be dictator that he is, Trump is trying to oust the chairman of the Federal Reserve Board and complete his corrupt takeover of the US central bank to serve his interests, along with those of his billionaire friends,” Warren said in a speech on the future of the Democratic Party through 2028 at the National Press Club.
ABC News’ Lauren Peller contributed to this report.
