Justice Department Could Revive Fed Chair Powell Inquiry, Pirro Says

The Justice Department's inquiry into Federal Reserve Chairman Jerome Powell could be resurrected, according to U.S. Attorney Jeanine Pirro, who dropped the investigation last month after a federal judge blocked her grand jury subpoenas. Pirro's comments suggest the department may pursue alternative legal avenues to continue examining Powell's conduct, despite the previous judicial intervention that halted the probe.

The original investigation was suspended when a federal judge ruled against the Justice Department's attempt to compel testimony and documents through grand jury subpoenas. The court's decision effectively put the inquiry on hold, but Pirro's recent statements indicate that prosecutors are exploring other methods to advance their investigation without running afoul of the judicial ruling that blocked their initial approach.

Pirro, who serves as the U.S. attorney in Washington, has not provided specific details about what alternative approaches the Justice Department might employ or what timeline they are considering for potentially restarting the investigation. Legal experts note that prosecutors have several options available, including pursuing different types of subpoenas or taking a more targeted approach that might satisfy the court's previous concerns.

The potential revival of the Powell inquiry comes at a sensitive time for the Federal Reserve, which is navigating complex economic challenges including elevated oil prices due to the Iran war and ongoing concerns about inflation. Any renewed investigation of the Fed chairman could add political pressure to an institution that prides itself on independence from political interference in its monetary policy decisions.

The Justice Department's interest in Powell appears to be part of a broader pattern of increased scrutiny of federal financial institutions and their leadership. However, the specific allegations or concerns that initially prompted the investigation remain unclear, as grand jury proceedings and related investigative materials are typically kept confidential. Legal observers will be watching closely to see whether Pirro follows through on her suggestion that the inquiry could be revived through alternative legal mechanisms.