Trump Hints He Could Be Open to Alternative Investigation Into Powell

President Trump says he could be open to an alternative investigation into the Federal Reserve and chairman Jerome Powell instead of the one being carried out by the Justice Department.Asked about it at the White House on Thursday, Mr. Trump said he could accept a different investigation. “I mean, look, it’s pretty easy,” Mr. Trump told reporters.The investigation into overruns at a headquarters renovation project threatens to delay the confirmation of a new Fed chairman. Mr. Powell’s term as chairman ends on May 15. Mr. Trump has nominated Kevin Warsh, a former Fed governor, to replace him but Senator Thom Tillis has vowed to hold up the confirmation of any new board member until the criminal investigation into Mr. Powell is finished.The United States attorney for the District of Columbia, Jeanine Pirro, opened a criminal probe after Mr. Trump pushed for an investigation into cost overruns on a $2.5 billion renovation of the Fed headquarters.One of the allegations is that Mr. Powell lied to Congress when questioned about the overruns on the project, which was initially estimated at $1.9 billion. Mr. Powell released a video in January to disclose that the Justice Department had served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to his testimony before the Senate Banking Committee last June.Mr. Powell called the action “unprecedented” and said it should be viewed “in the broader context of the administration’s threats and ongoing pressure.” Mr. Powell claims he is facing potential criminal charges only because the board has not heeded the president’s call to rapidly lower interest rates.The chief judge of the United States District Court for D.C., James Boasberg, agreed with Mr. Powell and dismissed the subpoenas, but Ms. Pirro has filed a request that he reconsider.Ms. Pirro claims that Judge Boasberg’s initial motion to quash the subpoenas used “an incorrect legal standard” and overlooked facts in the case. The Fed argues there are no extraordinary circumstances to justify a reconsideration of the subpoenas.Mr. Tillis has stood as a roadblock to Mr. Warsh’s confirmation because he is concerned about the independence of the central bank. He suggested earlier this month that he would support a Congressional investigation to replace the Department of Justice probe but Ms. Pirro is pushing back on that idea, saying she will not back down.“This investigation continues,” Ms. Pirro told reporters on Wednesday. “I am going forward,” she added.In another sign that the investigation is not winding down, prosecutors from Ms. Pirro’s office sought access to the Fed’s building site last week. They were turned away and told they needed prior authorization to enter.Mr. Powell says he has “no intention” of leaving the Fed as long as the probe continues. His term as chairman is expiring but his term as a Fed governor lasts until January 2028. Outgoing Fed chairmen have traditionally resigned from the board when their terms as chairman have ended.Mr. Trump said last week that he’ll fire Mr. Powell if he doesn’t leave when his term as chairman ends. That could set off a new court battle.The Banking Committee’s chairman, Senator Tim Scott, has not set a date for a vote on Mr. Warsh’s nomination but time is running out to confirm him before May 15.

Trump Hints He Could Be Open to Alternative Investigation Into Powell

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