U.S. Attorney Jeanine Pirro has publicly defended the Justice Department's unprecedented investigation into the Federal Reserve, stating that legal action became necessary only after the central bank ignored repeated attempts at contact.
Subpoenas Followed Ignored Outreach, Says Prosecutor
In a statement on the social media platform X on Monday, January 13, 2026, Pirro asserted that her office would not have sent subpoenas to the Federal Reserve "if they had just responded to our outreach." She detailed that the U.S. Attorney's Office made multiple attempts to discuss two key issues: significant cost overruns in the renovation of the Fed's headquarters and Chairman Jerome Powell's related congressional testimony.
"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, necessitating the use of legal process—which is not a threat," the former Fox News host wrote. She emphasized that the word "indictment" originated from Powell himself, not from prosecutors.
Powell and Lawmakers Decry Political Pressure
The controversy erupted after Federal Reserve Chair Jerome Powell issued a statement on Sunday, January 12. He accused the Justice Department of "threatening a criminal indictment" concerning his June testimony before the Senate about the renovation project. According to Bloomberg, the cost of renovating the Fed's Washington headquarters ballooned from an initial $1.9 billion to $2.5 billion.
While Powell stated he is not "above the law" and had kept Congress informed, he framed the investigation as a threat to the Fed's independence. "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation," Powell said. This comment is seen as a direct reference to months of public pressure from President Donald Trump to lower interest rates ahead of the midterm elections.
Bipartisan Concern Over Fed's Independence
The investigation has sparked alarm from both sides of the political aisle, raising profound questions about the separation between monetary policy and political influence.
Republican Senator Lisa Murkowski of Alaska called the probe "nothing more than an attempt at coercion" by the White House. She warned, "if the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer." She suggested that if cost overruns warrant a DOJ investigation, then Congress should investigate the DOJ.
Democratic Senator Elizabeth Warren of Massachusetts offered a sharper critique, calling the investigation an example of Trump "abusing the law like a wannabe dictator so the Fed serves him and his billionaire friends."
Pirro concluded her defense by stating, "This office makes decisions based on the merits, nothing more and nothing less," and expressed expectation of the Fed's "full cooperation." The standoff highlights a critical tension between executive branch oversight and the cherished independence of the United States' central bank.
