Justice Department: Pirro withdraws Powell appeal plan, instead files motion to vacate: Fed investigation hits a substantive setback

U.S. District prosecutors in Washington, D.C. Jeanine Pirro said on May 3 on CNN’s “State of the Union” that she would no longer appeal the subpoena ruling that had been dismissed in her criminal investigation of Federal Reserve Chair Jerome Powell, and would instead switch to a “motion to vacate” to replace it. CNBC reported that Pirro’s original appeal deadline was Monday, May 4, and the change of course was seen as a substantive setback to the criminal investigation of the Fed.

Boasberg judge rejects Pirro’s subpoena to the Fed, citing “presidential pressure” evidence

U.S. District Court Chief Judge James Boasberg previously rejected Pirro’s subpoena to the Fed, which sought internal materials related to cost overruns on renovation projects at the Federal Reserve’s headquarters. In the ruling, Boasberg wrote: “A great deal of evidence indicates that the government sent subpoenas to the Fed Board of Governors in order to pressure the chair to vote for rate cuts—or to resign altogether.”

On the CNN show, Pirro changed strategy: “We will file a motion to vacate the ruling by Judge Boasberg, because if this precedent stands, it will prevent prosecutors from going down the grand jury process, and will have a major impact on future cases.” She denied abandoning her authority to investigate the Fed, but the switch effectively withdrew the subpoena originally seeking the Fed’s building renovation materials.

“Motion to vacate” procedure explained: hard to apply to losing DoJ

Former Assistant U.S. Attorney Sean P. Murphy analyzed this: “A motion to vacate is basically asking the judge to pretend that something never happened.” He noted that Pirro recently used the same approach to file a motion to vacate the convictions in the January 6 Capitol incident involving the Proud Boys and Oath Keepers, with the aim of having the guilty records erased entirely.

Murphy added: “The key difference is that I don’t think she has standing to erase a DoJ record of its own defeat.” In general, appeals require approval from top DoJ officials; Pirro’s decision to pivot to a motion to vacate has been interpreted externally as a compromise that avoids the appellate review process.

Next: Fed investigation procedures effectively paused; pause in friction between the administration and the central bank

Pirro’s office did not respond to CNBC’s questions, and the Fed declined to comment. After this shift, the criminal investigation originally aimed at Powell personally still technically exists, but the subpoenas have been effectively withdrawn, so the Fed does not need to provide the requested materials. Pirro also said she still believes she has the right to continue investigating the Fed, suggesting further action may come later.

The key points to watch next are the specific requests in Pirro’s motion to vacate, how Judge Boasberg responds, and whether the investigation still has ongoing pressure effects after Powell steps down as chair and transitions to a governor role.

This article “U.S. Department of Justice: Pirro withdraws Powell appeal plan, switches to motion to vacate—Fed investigation substantively set back” first appeared on Chain News ABMedia.

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