Warren Says Justice Department’s Pledge To End Federal Reserve Investigation Is an Empty Promise

As the Senate Banking Committee prepares to vote to advance President Trump’s nomination of Kevin Warsh to become chairman of the Federal Reserve Board, Senator Elizabeth Warren says the Justice Department’s promise to end an investigation into the current chairman, Jerome Powell, is a ruse.Senator Thom Tillis, a key Republican on the panel, said on Sunday that he was dropping his resistance to advance Mr. Warsh’s nomination after the United States attorney for the District of Columbia, Jeanine Pirro, announced that her office’s probe would end. Mr. Tillis had previously said he wouldn’t vote for Mr. Warsh while the investigation continued.The Banking Committee chairman, Senator Tim Scott, scheduled a vote for Wednesday on Mr. Warsh’s nomination. Now that Mr. Tillis is agreeing to vote yes, the nomination is expected to advance to the full Senate on a straight party line vote of 13 to 11. Ms. Pirro had opened a criminal probe after President Trump pushed for an investigation into cost overruns on a $2.5 billion renovation of the Fed headquarters. One of the allegations was 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 last June before the Banking Committee.Mr. Powell called the action “unprecedented.” He said it should be viewed “in the broader context of the administration’s threats and ongoing pressure.” Mr. Powell claimed he was facing potential criminal charges only because the board had not heeded the president’s call to rapidly lower interest rates.Ms. Pirro insisted last week that the probe was moving ahead, but she reversed herself two days later after Mr. Trump suggested he was open to an alternative investigation. Ms. Pirro said that the inspector general for the Federal Reserve has been asked to scrutinize the building costs overruns.“Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry,” Ms. Pirro said in an X post. “Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.”Ms. Warren says that threat to reopen the investigation is a giant red flag. “Either the Republican majority is fooled easily or they are hoping to fool the American people,” Ms. Warren said in a statement. “The Department of Justice threatened to restart the investigation into Fed Chair Powell at any time while continuing its probe against Governor Lisa Cook.”President Trump has been highly critical of the Federal Reserve and Mr. Powell as he’s continued a public pressure campaign on interest rates.Mr. Trump attempted to fire Lisa Cook from the Fed over allegations of mortgage fraud despite her not ever being criminally charged with any crime. Ms. Cook is fighting the firing, arguing that her removal was for political reasons and not “for cause” as required. She says she was not given due process in fighting the allegations.The Supreme Court has heard arguments in Ms. Cook’s case but has yet to rule. The justices have given Mr. Trump broad authority to fire other federal appointees but have cautioned that the Fed is unique.“No Republican claiming to care about Fed independence should support moving forward the nomination of Kevin Warsh,” Ms. Warren added.Mr. Powell’s term as chairman ends on May 15 but he could remain as a governor for two more years. He said he wouldn’t leave as long as the investigation continued.

Warren Says Justice Department’s Pledge To End Federal Reserve Investigation Is an Empty Promise

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