U.S. Attorney Jeanine Pirro said Wednesday that she will appeal a federal court ruling that blocked her criminal investigation into the Federal Reserve, keeping President Donald Trump's nominee to lead the central bank in confirmation limbo.
"I am going forward. We are appealing the decision of Judge Boasberg," Pirro said during a news conference, in remarks reported by CNBC. "The cost overruns on that building are well over a billion dollars. This investigation continues."
The probe centers on alleged cost overruns tied to renovations at two historic Fed buildings in Washington. The total renovation cost is about $2.5 billion. Federal Reserve Chair Jerome Powell has called the investigation an effort to pressure the central bank into cutting interest rates.
In March, Chief U.S. District Judge James Boasberg quashed the grand jury subpoenas, citing what he described as a "mountain of evidence" that their purpose was to exert pressure on the Fed's board of governors. When Boasberg rejected her motion for reconsideration on April 3, the clock began on a 30-day period within which the government could file a notice of appeal, per DOJ guidelines.
Pirro also challenged the legal basis for the court's intervention, citing Supreme Court precedent. "The idea that a judge can stand at the door of a grand jury and tell a prosecutor, 'You're not allowed to go in,' when the United States Supreme Court has said you can go into a grand jury based on rumors and suspicion, is an order that we think must be appealed," she said.
The ongoing legal fight is complicating the path forward for Kevin Warsh, Trump's pick to succeed Powell when his term as Fed chair expires May 15. Blocking the nomination from advancing is the stated intention of Banking Committee member Sen. Thom Tillis of North Carolina, who has made clear he will not relent until the Justice Department abandons the probe. The committee held Warsh's confirmation hearing on Tuesday.
With the Senate in recess during the week of May 4, the Banking Committee would not have its first opening to advance Warsh's nomination until the following week, according to CNBC.
The standoff has its roots in a months-long campaign by Trump to pressure the Fed into compliance on interest rates, which has instead entrenched both sides and cast uncertainty over the timeline for Warsh to assume the Fed chairmanship. Powell has stated his intent to remain as chair until the investigation concludes with "transparency and finality." Tillis is not the only obstacle — several Republican members of the Banking Committee, including committee chair Sen. Tim Scott of South Carolina, have said they do not believe Powell committed a crime.
Despite having appointed Powell to the role in 2017, Trump has backed the investigation and repeatedly cited renovation figures that exceed the actual costs. "We have to find out why a small building cost close to $4 billion," Trump told CNBC's "Squawk Box" earlier this week.