Federal prosecutors turned away from Federal Reserve building, as Trump threatens to fire Powell

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WASHINGTON (AP) — Federal prosecutors made an unannounced visit this week to a construction site at Federal Reserve headquarters that is the focus of an investigation into a $2.5 billion renovation project, according to two people familiar with the visit.

Two prosecutors and an investigator from U.S. Attorney Jeanine Pirro’s office were turned away on Tuesday by a building contractor and referred to Fed attorneys, one of the people said. The two people familiar with the visit spoke on condition of anonymity because they weren’t authorized to publicly discuss an ongoing investigation.

Last month, during a closed-door hearing before a federal judge, a top deputy from Pirro’s office conceded that they hadn’t found any evidence of a crime in their investigation of the headquarters project.

The investigation has faced bipartisan opposition in Congress. It also has delayed Senate consideration of Kevin Warsh, President Donald Trump’s pick to replace Fed chairman Jerome Powell when his term ends May 15.

Robert Hur, an attorney for the Federal Reserve board of governors, sent an email to Pirro’s prosecutors about their visit and their request for a “tour” to “check on progress” at the construction site. Hur’s email, which The Associated Press has viewed, noted that U.S. District Judge James Boasberg concluded that their interest in the Federal Reserve’s renovation project was “pretextual.”

“Should you wish to challenge that finding, the courts provide an avenue for you; it is not appropriate for you to try to circumvent it,” Hur wrote.

Sen. Thom Tillis, a North Carolina Republican who is a key member of the Senate Banking Committee, posted a link on social media to The Wall Street Journal’s article on the visit below an image of the Three Stooges and wrote, “The U.S. Attorney’s Office for D.C. at the crime scene.”

The investigation by Pirro’s office centered on brief testimony last June by Powell before the Senate Banking Committee, when he was asked about cost overruns on the Fed’s extensive building renovations. The most recent estimates from the Fed suggest the current estimated cost of $2.5 billion is about $600 million higher than a 2022 estimate of $1.9 billion.

News of the unannounced visit by prosecutors comes as Trump has again threatened to fire Powell, if the Federal Reserve Chair decides to stay on the central bank's governing board after his term as chair expires next month.

“Well then I’ll have to fire him, OK?” Trump told Fox Business in an interview that aired Wednesday when reminded that Powell has said he won’t leave the Fed while the Justice Department investigates a $2.5 billion renovation project at the bank.

Trump has for months wanted to remove Powell as chair of the Fed, saying he has been too slow in orchestrating interest rate cuts that would give the U.S. economy a quick boost. Powell has said the investigation is a pretext to undermine the Fed's independence to set rates.

Powell's term as Fed governor expires May 15, but his term as a Fed board member lasts until January 2028.

Warsh's confirmation to succeed Powell has been delayed. Tillis, a North Carolina Republican, has said he won’t vote to confirm any Fed nominees until the investigation is dropped.