The standoff between the Justice Department and the Federal Reserve just got more heated, with U.S. Attorney for the District of Columbia Jeanine Pirro pushing back against accusations that her office is politically targeting Fed Chair Jerome Powell.

When Outreach Gets Ignored

Pirro took to X on Tuesday to explain her side of the story. According to her, the DOJ made "multiple occasions" of attempts to discuss the Fed's headquarters renovation project—specifically those pesky cost overruns—and Powell's testimony to Congress about them. The Fed, she says, simply ignored these outreach efforts.

That silence, Pirro argued, left her office no choice but to pursue "legal process," which she emphasized "is not a threat." She also pointed out that Powell was the one who used the word "indictment," not the DOJ.

"None of this would have happened if they had just responded to our outreach," Pirro said. She insisted her office makes decisions "based on merits," rejecting suggestions that the investigation is tied to President Donald Trump's well-documented tensions with the Fed Chair.

Pirro wrapped up by turning Powell's own words back on him, agreeing that "no one is above the law" and expecting his full cooperation going forward.

For context, Pirro—known for hosting reality court shows Judge Jeanine Pirro and Justice with Judge Jeanine—was appointed as interim U.S. attorney for D.C. by Trump in May 2025, replacing Ed Martin.

Powell Calls It Political Theater

Powell isn't buying the explanation. In a video statement released Sunday, he said the Justice Department threatened the central bank with "criminal indictment" over his congressional testimony. He dismissed the entire investigation as "pretexts," arguing the real goal is asserting political control over U.S. monetary policy.

Three former Fed chairs—Janet Yellen, Ben Bernanke, and Alan Greenspan—have weighed in, warning that criminal proceedings against Powell would threaten the Fed's independence, a cornerstone of the central bank's credibility.

Former Assistant Attorney General Jonathan Kanter offered a more measured take, noting that "the bar for opening up a criminal investigation is very low," while "the bar for convicting somebody for a crime is very high." He added that perjury cases based solely on testimony are rare and that securing a conviction here would be "very difficult."

The legal chess match continues, with both sides digging in and the Fed's independence hanging in the balance.