LARRY KUDLOW: The Solution Proposed by Jeanine Pirro
Let me share my thoughts on the current controversy surrounding Jay Powell and the recent subpoenas, with the hope that cooler heads will prevail. I genuinely wish for this issue to settle down swiftly so we can smoothly transition to a new Federal Reserve chair in the near future.
In my opinion, Mr. Powell has significantly compromised the independence of the Federal Reserve more than anyone I can recall in recent history. I have voiced this concern multiple times, and I don't intend to rehash my criticisms of Powell, who has become quite the politically charged Fed Chair. However, to expedite his exit, I believe my long-time friend Jeanine Pirro—a respected figure now serving as the U.S. Attorney for the District of Columbia—could play a pivotal role.
There is perhaps no one better suited for this situation than Jeanine. Yet, as she noted herself, the subpoena issued to Jay Powell and the Federal Reserve may have initiated a legal process prematurely—she stated to Fox Digital that it "is not a threat."
Continuing with Jeanine’s remarks, she stated, "The term 'indictment' was introduced by Mr. Powell himself, not anyone else. This situation would not have escalated if they had simply responded to our inquiries."
It appears that two emails were sent to the Federal Reserve during the winter holidays, requesting clarification regarding their significant cost overruns, without any urgency or indication of a criminal investigation involved. This communication occurred prior to the issuance of the subpoena. At that juncture, with what seems to be no response from the Fed, Jeanine Pirro, one of the sharpest minds I know and an excellent prosecutor, may have acted a bit hastily. When the situation exploded into chaos, she remarked, "This office makes decisions based solely on the merits. We agree with the Federal Reserve Chairman that no individual is above the law, and that is why we expect his full cooperation."
I concur with her assertion that decisions should indeed be merit-based. However, labeling a cost overrun in the heart of Washington, D.C., as a criminal matter seems questionable. If that qualifies as a crime, then a considerable number of individuals in and around D.C. would find themselves behind bars—and frankly, there wouldn't be enough jail space to accommodate them. Cost overruns are a common occurrence and everyone is aware of this reality. While I do not seek to justify it, I aim to present a realistic perspective. Additionally, I have heard, though I cannot confirm, that Ms. Pirro’s office may not have informed the main Justice Department prior to taking this contentious step. If that is accurate, it raises concerns about protocol.
That said, to the best of our knowledge, a grand jury has yet to be assembled, and no formal charges have been brought against Mr. Powell or the Federal Reserve. Notably, the President has distanced himself from this issue, claiming ignorance and denying any involvement in the Justice Department's actions regarding the Fed subpoenas.
Therefore, I'm suggesting that the groundwork could be laid for a swift resolution. Perhaps Ms. Pirro could arrange a meeting with Mr. Powell to address the Fed's cost overruns directly, leading to a resolution of the matter.
In essence, there really isn't much substance to this issue. Once settled, we can focus on the vital task of appointing a new Fed chair who will guide the thriving economy established by Mr. Trump while ensuring the Federal Reserve remains independent.
