Prosecutor conceded lack of criminal evidence in Fed investigation
AP News • • general
Key Points:
- The Justice Department's investigation into a $2.5 billion Federal Reserve renovation project found no evidence of criminal wrongdoing, as admitted by a federal prosecutor during a sealed March 3 hearing.
- Chief Judge James Boasberg quashed subpoenas issued to the Federal Reserve, stating the government had produced "essentially zero evidence" implicating Fed Chair Jerome Powell in any crime and criticized the prosecution's justification as "thin and unsubstantiated."
- The investigation, led by U.S. Attorney Jeanine Pirro’s office, focused on Powell's Senate testimony about project cost overruns but failed to identify specific false statements or fraud.
- The judge suggested the subpoenas were politically motivated to pressure Powell amid President Trump's push for lower interest rates, a claim supported by the Federal Reserve's legal representation.
- Pirro condemned the judge's ruling as an overreach and vowed to appeal, while the investigation has delayed Senate consideration of Trump's nominee to replace Powell as Fed Chair.
