Report: DOJ Launched Federal Reserve Probe in Response to Central Bank’s Stonewalling | Headline USA

(Ken Silva, Headline USA) When Federal Reserve Char Jerome Powell announced Sunday that the Justice Department had served the central bank with subpoenas, he portrayed the DOJ’s actions as a “threat” intended to undermine the Fed’s independence when it comes to setting interest rates.

But according to the Washington Post, the DOJ’s investigation was only launched after the Fed ignored emails in a non-criminal probe.

Citing six anonymous sources with knowledge of the matter, the Post reported Friday that the DOJ sent two emails to the Federal Reserve in December as part of a non-criminal inquiry launched the month prior.

“The messages sought a meeting or phone call to discuss renovations at the central bank’s headquarters,” the Post reported. “Fed officials opted not to respond to [the emails], choosing to avoid informal engagement on a matter that could carry criminal implications.”

The Fed’s silence reportedly led Jeanine Pirro, the U.S. attorney in Washington, to believe that the Fed was hiding something. That’s when she decided to issue subpoenas, according to the Post.

“The claim that, ‘Oh, they didn’t think it was a big deal’ is naive and almost malpractice,” a DOJ official told the Post. “We gave them a deadline. We said the first week of January.”

Powell has retained outside counsel at the law firm Williams & Connolly—a firm that’s represented former presidents Bill Clinton, Barack Obama and George W. Bush, as well as a slew of other powerful characters. The FBI is reportedly not involved in the investigation.

The subpoenas relate to Powell’s testimony before the Senate Banking Committee in June, when he spoke about the Fed’s $2.5 billion renovation of two office buildings—a project that President Donald Trump has criticized as excessive.

At that hearing, Senate Banking Committee Chair Tim Scott, R-SC, said the Fed’s building renovation included “rooftop terraces, custom elevators that open into VIP dining rooms, white marble finishes, and even a private art collection.”

Powell disputed those details in his testimony, saying “there’s no new marble. … there are no special elevators” and added that some of the controversial items are “not in the current plan.” In July, Russell Vought, director of the Office of Management and Budget, said in a letter to Powell that his testimony about changes to the building plans “raises serious questions about the project’s compliance” with previous plans approved by a planning commission.

Still, later that month, Trump visited the building site and, while standing next to Powell, overstated the cost of the renovation. Later that day, Trump, speaking to reporters, downplayed any concerns with the renovation. He said, “they have to get it done” and added, “Look, there’s always Monday morning quarterbacks. I don’t want to be that. I want to help them get it finished.”

When asked if it was a firing offense, Trump said, “I don’t want to put that in this category.”

The Associated Press contributed to this report.

Ken Silva is the editor of Headline USA. Follow him at x.com/jd_cashless.