Justice Department officials turned away in visit to the Fed

U.S. Attorney Jeanine Pirro sent Justice Department prosecutors to the Federal Reserve headquarters but they were turned away from entering to inspect renovations.

The surprise visit occurred on Tuesday when two prosecutors went to the construction site in Washington, D.C., and tried to access the building, The New York Times, The Washington Post and CBS News reported citing unnamed sources. They were denied access.

The Justice Department has opened an investigation into Fed Chairman Jerome Powell over the renovation project, citing its $2.5 billion cost. President Donald Trump has said he wants Powell removed from his role as the Federal Open Market Committee has maintained elevated interest rates while seeking to tame inflation.

Robert K. Hur, an attorney representing the Fed, responded to Pirro sending prosecutors to the construction site in a letter. The letter notes that a federal judge nullified two grand jury subpoenas targeting the Fed last month.

"Should you wish to challenge that finding, the courts provide an avenue for you; it is not appropriate for you to try to circumvent it," Hur said in a letter.

Judge James Boasberg wrote in his ruling that there is "abundant evidence" that the grand jury subpoenas are meant to harass Powell.

"There is abundant evidence that the subpoenas' dominant (if not sole) purpose is to harass and pressure Powell either to yield to the president or to resign and make way for a Fed chair who will," Boasberg wrote.

Powell's term as Fed chairman ends in May. Trump has nominated Kevin Warsh to succeed Powell but Sen. Thom Tillis, R-N.C., a member of the Senate Banking Committee, said he will not vote for Warsh's nomination until the Justice Department investigation has concluded.

If Warsh is appointed, he would be the wealthiest chairman of the Federal Reserve in its history. A disclosure of his financial records on Tuesday showed that he and his wife have about $192 million in assets

Pirro said in a statement on Tuesday that the construction project "deserves some serious review."

"Any construction project that has cost overruns of almost 80% over the original construction budget deserves some serious review," Pirro said. "And these people are in charge of monetary policy in the United States?"