According to informed sources, U.S. prosecutors made an unannounced visit to the Federal Reserve's offices in Washington on Tuesday. This follows an ongoing investigation by the Department of Justice into Fed Chair Jerome Powell and the central bank's renovation projects.
A person not authorized to speak publicly on the matter stated that three officials from the Justice Department attempted to access the construction site but were denied entry due to security and other permitting protocols.
The incident has heightened tensions between the Federal Reserve and the Justice Department, two entities that have been entangled in a legal dispute for several months. The situation could potentially affect the process of President Donald Trump nominating Kevin Warsh to succeed Powell as Fed Chair. Powell's current term as Chairman is set to expire in May.
Robert Hur, an external attorney representing the Federal Reserve, has sent a letter to the Justice Department objecting to the visit. He demanded that all future communications should be conducted through established legal channels.
In a letter obtained by Bloomberg, Hur wrote, "As you know, Chief Judge Boasberg has ruled that your office's interest in the Fed's renovation project is pretextual. Any challenge to that ruling should be pursued through the judicial process, not by attempting to circumvent it." He also requested a commitment from the Justice Department not to contact the Federal Reserve directly without legal counsel present.
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