By Nick Timiraos and Matt Grossman
The Justice Department on Monday asked a federal judge to vacate his ruling that threw out subpoenas issued to the Federal Reserve as part of the criminal investigation of Chair Jerome Powell.
The request from U.S. attorney Jeanine Pirro isn't outwardly intended to reopen the probe. It's a procedural step aimed at preventing the ruling from standing as a legal precedent that could work against the Justice Department in unrelated investigations in the future.
The motion, filed in the U.S. District Court for the District of Columbia, follows Pirro's announcement on April 24 that she would suspend her criminal investigation of Powell and how he managed the Fed's building renovations, a probe that was threatening to delay the confirmation of Powell's successor, Kevin Warsh. Both Powell and Sen. Thom Tillis (R., N.C.), the key Republican lawmaker who had blocked Warsh's confirmation until the probe was halted, said last week that they had received assurances that the action announced Monday was focused on removing an unfavorable ruling from the books, not targeting Powell again.
The future of the investigation now turns on the Fed inspector general's audit of the renovations, an inquiry Powell requested last July. Pirro told CNN on Sunday that she would close the matter if the inspector general found no wrongdoing. But she reserved the right to review the audit's underlying material and reach her own conclusion.
"If there's something there, great. And if there isn't, I'll go home," she said.
Powell announced last week that he will remain on the Fed's board after his term as chair ends May 15, citing what he called unprecedented legal pressure on the central bank. "I am encouraged by recent developments, and I am watching the remaining steps in this process carefully," he said.
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(END) Dow Jones Newswires
May 04, 2026 14:33 ET (18:33 GMT)
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