⚖ Pirro, Powell & the Grand Jury Trap
In January 2026, U.S. Attorney Jeanine Pirro's office served the Federal Reserve with grand jury subpoenas and threatened Federal Reserve Chair Jerome Powell with criminal indictment — ostensibly over cost overruns in a building renovation and whether Powell had been truthful with Congress about it. Pirro said her office was simply following the Attorney General's directive to investigate abuses of taxpayer dollars. Powell said something different. He called the charges pretexts — and laid out exactly what was really going on. The documented facts back Powell up at every turn.
🔴 The Legal Standard: What Shapiro & Trump's Own Lawyers Said About Grand Jury Abuse
Before getting to Pirro's specific lies, it's worth establishing the legal and rhetorical standard that Trump's own defenders set — because what Pirro did violates it completely.
Throughout Trump's various prosecutions, Ben Shapiro and Trump's legal team made a consistent argument: that using a grand jury as a "fishing expedition" to target a specific individual for political reasons is not legitimate law enforcement — it is the abuse of prosecutorial power. They argued that prosecutors cannot identify a person they want to destroy, then work backward to find a crime to hang on them. Courts, they said, should push back on exactly this kind of overreach.
Trump's own Georgia legal team made the same argument in March 2023, filing a 52-page motion to quash the Fulton County special grand jury report — arguing the investigation was "confusing, flawed, and at times blatantly unconstitutional," and that targeting Trump politically tainted the entire process. The Georgia judge ultimately rejected that motion, but the underlying legal principle — that you cannot convene a grand jury to go fishing for a crime against a specific person for political reasons — is a legitimate one that courts take seriously.
Keep that standard in mind as you read what Pirro actually did.
Sources: NBC News — Judge Denies Trump's "Fishing Expedition" • Atlanta Journal-Constitution — Trump Lawyers Move to Quash Grand Jury Report • CBS News — Georgia Judge Rejects Trump Bid to Quash Grand Jury
🔴 The Lie: This Was About Protecting Taxpayers from a Wasteful Renovation
There are at least four documented problems with that framing.
🔴 Problem #1: The Federal Reserve Is Not Funded by Taxpayer Dollars
This was not an obscure technicality. Multiple news outlets noted it immediately when the DOJ's statement was released. Pirro's office never corrected the record.
Sources: NBC News — Trump Denies Involvement in Fed Subpoena • PBS NewsHour — DOJ Investigation Sparks Backlash
🔴 Problem #2: Trump Had Been Publicly Demanding This for Months
The investigation did not emerge from a neutral review of federal spending. It emerged directly from Trump's months-long public pressure campaign against Powell over interest rates.
- Trump spent years demanding that Powell cut interest rates aggressively. When Powell declined, citing inflation concerns, Trump escalated his attacks — calling Powell "incompetent," threatening to fire him, and floating legal action.
- In late December 2025 — weeks before the subpoenas were served — Trump publicly stated: "We're thinking about bringing a suit against Powell for incompetence... There is nothing you can do about it, he's just a very incompetent man, but we're going to probably bring a lawsuit against him." He specifically cited the building renovation costs as his stated justification.
- Federal prosecutors in Pirro's office quietly opened the criminal investigation in November 2025 — the same month Trump was intensifying his public attacks. Three sources told NBC News the U.S. Attorney's office did not contact main Justice Department officials, the White House, or the Treasury Department before issuing the subpoenas — keeping the circle deliberately small.
- When asked by NBC News about the investigation, Trump said: "I don't know anything about it." He then immediately attacked Powell again, saying: "What should pressure him is the fact that rates are far too high."
Sources: NBC News — DOJ Investigation Began Late Last Year • PBS NewsHour — Powell Pushes Back • Wikipedia — Federal Investigation into Jerome Powell
🔴 Problem #3: Trump's Own Appointees Caused a Portion of the Cost Overruns
This is the detail that exposes the entire pretext most completely. The cost overruns Pirro cited as justification for the subpoena were partly caused by decisions made during Trump's own first term.
- When the Federal Reserve moved forward with renovation plans in 2020, its architects proposed using glass walls — intended to reflect the Fed as a transparent institution. Trump appointees to the U.S. Commission of Fine Arts objected, deriding the design as a "glass box." They pushed instead for more white Georgia marble to align with a draft Trump executive order mandating neoclassical-style federal buildings.
- Trump formally issued that executive order in December 2020, enshrining the preference for classical architecture — and the more expensive marble-heavy design along with it. A Harvard architecture professor who sat on the commission noted at the time: "I wouldn't be surprised if the result costs more" because of the added marble.
- Trump's own 2018 steel and aluminum tariffs — a 25% duty on steel and 10% on aluminum — contributed directly to rising construction costs. Steel prices rose approximately 60% and overall construction materials costs rose roughly 50% from when the renovation plans were first approved.
- The remaining cost overruns were driven by pandemic-era inflation, asbestos and water-table issues discovered during excavation, labor shortages, and underground mechanical work required by D.C.'s strict building height restrictions — none of which Powell could have predicted or controlled.
Sources: PBS NewsHour — Trump Appointees Pushed More Marble • Fortune — How the Fed Renovation Budget Ballooned • CBS News — Trump and Powell Argue Over Renovation Costs
🔴 Problem #4: By Shapiro's Own Standard, This Is Exactly What He Said Was Wrong
Apply the standard Trump's defenders established to what Pirro actually did, step by step:
- Was a specific individual targeted? Yes. Jerome Powell — by name, repeatedly, publicly — by the President of the United States, months before any subpoena was issued.
- Was there a political motive? Yes. Trump wanted Powell to cut interest rates. Powell refused. Trump publicly threatened legal action. The investigation followed. Powell himself identified this as the motive on the record.
- Was the stated legal justification a pretext? Yes. The Fed is not funded by taxpayer dollars, which was the DOJ's own stated rationale. The renovation costs cited were partly caused by Trump's own appointees and tariffs. Every sensational claim about lavish spending — marble, VIP elevators, rooftop gardens — was false by Powell's own documented Senate testimony.
- Was prosecutors working backward from a target to a charge? Yes. Trump identified Powell as an enemy, floated the renovation as a grievance, and Pirro's office opened a criminal investigation using that exact grievance as the hook — the textbook definition of finding a crime to fit a target.
Sources: NBC News — Judge Denies Trump's "Fishing Expedition" • PBS NewsHour — Powell Pushes Back
🔴 The Reaction: Even Republicans Called It What It Was
The subpoena did not just draw criticism from Democrats and the left. Members of Trump's own party broke publicly with the administration over it — which tells you something about how transparently political the move was.
- Sen. Thom Tillis (R-NC) said there could be "no remaining doubt" that Trump's advisers were "actively pushing to end the independence of the Federal Reserve" and vowed to block every Trump Fed nominee — including the upcoming Fed Chair vacancy — until the investigation was resolved.
- Sen. Lisa Murkowski (R-AK) said after speaking directly with Powell: "It's clear the administration's investigation is nothing more than an attempt at coercion."
- Sen. Kevin Cramer (R-ND), a frequent Powell critic, said he does not believe Powell "is a criminal" and hoped the matter could be "put to rest quickly."
- Treasury Secretary Scott Bessent privately told people he was unhappy with the decision to criminally investigate Powell, according to a CNN source.
- Former Fed Chairs Alan Greenspan, Ben Bernanke, and Janet Yellen, along with former Treasury Secretaries Henry Paulson, Timothy Geithner, Robert Rubin, and Jacob Lew, issued a joint statement calling the probe "an unprecedented attempt to use prosecutorial attacks to undermine the Federal Reserve's independence" and warning it was "how monetary policy is made in emerging markets with weak institutions."
Sources: PBS NewsHour — Backlash and Support for Fed Independence • Wikipedia — Federal Investigation into Jerome Powell • CNN — Trump's DOJ Ratchets Up Political Leverage