White House Frustrated with Pirro’s Management of Powell Investigation

Recent developments surrounding the investigation of Federal Reserve Chair Jerome Powell have drawn significant criticism towards U.S. Attorney Jeanine Pirro. White House officials expressed frustration over her handling of the inquiry, which they claim took them by surprise. The investigation has led to a lengthy damage control effort by the administration, affecting its relations with lawmakers and the financial markets.

White House Reaction to Criminal Investigation

The criminal probe was unexpected, leaving many senior officials unsettled. Inside the White House, there were urgent discussions aimed at calming market fears and separating President Donald Trump from the investigation, despite his history of criticizing Powell. Trump’s administration had hoped to navigate the remaining months of his term smoothly, but the investigation has disrupted these plans.

Powell Responds to Subpoena

Jerome Powell confirmed his office had received grand jury subpoenas. He characterized the inquiry as an attempt by the Trump administration to pressure him into lowering interest rates. This unexpected move has alarmed various stakeholders, including Treasury Secretary Scott Bessent, who expressed his own discontent regarding the situation.

Political Ramifications

• Republican Senator Thom Tillis from North Carolina has stated he will withhold his vote on any nominee to replace Powell until the inquiry concludes.
• Tillis emphasized he wouldn’t endorse any candidate during the ongoing investigation.

In multiple interviews, President Trump denied any knowledge of the ongoing investigation, reiterating his dissatisfaction with Powell’s performance. Notably, he has previously criticized the Federal Reserve’s interest rate policies, framing them as detrimental to economic growth.

Pirro Defends Her Office’s Actions

Jeanine Pirro, meanwhile, justified her decision to initiate the investigation, claiming her office had sought to communicate with the Federal Reserve without success. She stated that legal processes became necessary to obtain the required information. In her Fox News segment, she insisted on the importance of examining the renovation costs at the Fed, which she described as significant.

Concerns Over Federal Reserve Independence

The investigation into Powell has raised concerns regarding the independence of the Federal Reserve. Trump’s frustrations about the pace of prosecutions against political adversaries have also increased, casting a shadow on the relationship between his administration and the department of justice.

Response from Former Officials

In light of the investigation, a coalition of former Federal Reserve chairs and Treasury secretaries issued a statement opposing the inquiry. They warned against leveraging prosecutorial power to undermine the institution’s integrity. This bipartisan backlash has put additional pressure on the White House.

Future Implications for the Fed

As uncertainty surrounds the future of Federal Reserve leadership, questions emerge about Powell’s potential decision to extend his term. Though he initially had no intention to stay longer, the political climate may prompt him to reconsider. This ongoing saga underscores the challenges within the White House and the implications of its approach toward the Federal Reserve.

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