The Federal Reserve has launched a behind-closed-doors legal challenge that could prevent U.S. Attorney Jeanine Pirro from completing a controversial probe into the Chair of the Federal Reserve, Jerome Powell.
America’s central bank has asked a judge to quash a pair of subpoenas Pirro issued as part of an investigation into allegations that Powell lied to Congress about the ballooning costs of renovations to Federal Reserve buildings.
The Fed made the request in sealed proceedings, The Wall Street Journal reported. If successful, the move could drastically reduce, or even eliminate, its obligation to respond to the subpoenas.
It is unclear what specific legal arguments the Fed has put forward, but subpoena recipients commonly challenge requests they believe are overly broad or seek information protected by legal privilege. The requests are being made away from the public to comply with secrecy rules regarding criminal investigations pending before a grand jury.
Pirro, the former host of the Fox News show Justice with Judge Jeanine, was picked by Donald Trump for the U.S. attorney role. Her investigation into Powell has been widely condemned as another example of the president using federal prosecutors to target his political adversaries.
Trump has repeatedly attacked Powell as “stupid,” a “dummy,” and a “knucklehead” for refusing to slash interest rates as quickly as the president would like, while suggesting the traditionally nonpartisan central bank is biased against him.
In January, Powell released a rare statement saying the Fed made “every effort” to keep Congress informed about renovation costs, and suggested the “threat” of criminal charges was motivated by the bank’s refusal to bow to Trump’s pressure to cut interest rates.
Several Republican lawmakers have also raised concerns about the investigation and questioned its merits.
North Carolina Sen. Thom Tillis, a member of the Senate Banking Committee, has said he will refuse to support any of Trump’s nominees to the Federal Reserve Board of Governors until the probe concludes.
Trump has nominated former Fed governor Kevin Warsh to replace Powell when his term ends in May. However, if Tillis joins Democrats in the 13-11 GOP majority on the Senate Banking Committee to oppose Warsh, his nomination will fail to advance.
All 11 Democrats on the committee have already demanded that Warsh’s confirmation hearing be postponed until the “sham” investigation into Powell is resolved.
The Daily Beast has contacted the Federal Reserve and Pirro’s office for comment.
