Federal prosecutors visit Fed amid Trump’s threats to fire Powell

Federal prosecutors made an unannounced visit this week to a construction site at Federal Reserve headquarters, which is under investigation for a $2.5 billion renovation project. Two prosecutors and an investigator from U.S. Attorney Jeanine Pirro's office were turned away by a building contractor and referred to Fed attorneys, according to two anonymous sources familiar with the visit.

During a closed-door hearing last month, a deputy from Pirro's office acknowledged that they had not found any evidence of a crime related to the renovation project. The investigation has faced bipartisan opposition in Congress and has delayed Senate consideration of Kevin Warsh, President Donald Trump's nominee to replace Fed chairman Jerome Powell, whose term ends May 15.

Robert Hur, an attorney for the Federal Reserve board of governors, communicated with Pirro's prosecutors regarding their visit and request for a tour of the construction site. Hur noted in an email that U.S. District Judge James Boasberg had deemed their interest in the renovation project as 'pretextual.' He advised that any challenge to this finding should be pursued through the courts, not through circumvention.

Sen. Thom Tillis, a Republican member of the Senate Banking Committee, commented on social media regarding the prosecutors' visit, likening it to a scene from The Three Stooges. The investigation stems from Powell's testimony last June about cost overruns on the renovation, which have escalated from an initial estimate of $1.9 billion to $2.5 billion.

Trump has reiterated his desire to remove Powell, claiming he has been too slow in implementing interest rate cuts to stimulate the economy. In a recent interview, Trump stated, 'Well then I'll have to fire him, OK?' if Powell remains on the Fed board during the ongoing investigation. Powell has countered that the investigation is a tactic to undermine the Fed's independence in setting rates.