Justice Department found no evidence of a crime in Federal Reserve renovation project, prosecutor admits
CBS News • • general
Key Points:
- A Justice Department investigation into a $2.5 billion Federal Reserve renovation project found no evidence of criminal wrongdoing, as acknowledged by Assistant U.S. Attorney Andrew Massucco during a closed hearing.
- Chief Judge James Boasberg quashed government subpoenas to the Federal Reserve, criticizing the investigation for lacking evidence and calling the prosecutors' justification "thin and unsubstantiated."
- The probe, led by U.S. Attorney Jeanine Pirro's office, was seen by critics as politically motivated pressure on Fed Chair Jerome Powell to support lower interest rates favored by President Trump.
- Boasberg noted the government declined to provide further evidence directly to the court, leading him to conclude the investigation targeted Powell as a "disfavored official" rather than pursuing legitimate suspicions.
- Pirro condemned the judge's ruling as an overreach and vowed to appeal, while the investigation has delayed Senate consideration of Kevin Warsh, Trump's nominee to replace Powell.
