Warren and Durbin criticize Pirro over decision to halt Powell probe

The Justice Department’s criminal investigation into Federal Reserve Chairman Jerome Powell has only been “temporarily paused,” a pair of Democratic senators said in a letter sent to the department on Friday and first obtained by CNBC.

Sen. Elizabeth Warren, D-Mass. “Your announcements leave the door wide open for you to reopen criminal investigations against Chairman Powell or initiate future unfounded investigations of Powell or other Fed Governors and future Fed Chairs, should it once again become politically expedient,” and Dick Durbin, D-Ill., wrote in a letter addressed to U.S. Attorney for the District of Columbia Jeanine Pirro.

The Fed inspector general has been asked to investigate cost overruns on an ongoing renovation project, Pirro said Friday. Pirro did not specify who made the request. Powell asked the inspector general last year to look into the issue.

“While the IG conducts this investigation, I have instructed my office to close our investigation,” Pirro said. “However, remember that I will not hesitate to reopen the criminal investigation if the facts warrant.”

Pirro’s office did not immediately respond to a request for comment.

The Fed declined to comment on Pirro’s decision earlier Friday. Powell said he received subpoenas from Pirro’s office in January. He denounced them as excuses and said the Trump administration was dissatisfied with him for not cutting interest rates faster and deeper than he believed the Fed was right to do.

Prosecutors from Pirro’s office told a judge in March that they had no concrete evidence of a crime. The judge revoked Pirro’s subpoenas. Appellate lawyers told CNBC that an appeal would be difficult.

The senators’ letter explores potential political motivations for the investigation. “From your perspective, what are the types of ‘facts’ that would warrant reopening the investigation?” Warren and Durbin ask.

They ask Pirro whether he was informed of President Donald Trump or other administration officials’ decision to halt the investigation. They also want details about the request from the Fed’s inspector general.

Scott Alvarez, the Fed’s former general counsel, said earlier Friday that the agency was likely asking Pirro questions about similar issues.

“What kind of facts would cause him to reopen an investigation that he initially launched without any facts?” he said.

Warren said earlier Friday that she did not believe the Senate should move forward on confirming Kevin Warsh, Trump’s nominee to replace Powell. Warsh testified before the Senate Banking Committee on Tuesday. Sen. from North Carolina, one of the Republicans on the committee. Thom Tillis has vowed to block the nomination while the investigation continues.

Tillis did not comment on Pirro’s decision.