Politics
U.S. Attorney Jeanine Pirro Exposes Federal Reserve Cost Overruns
WASHINGTON, D.C. – U.S. Attorney for the District of Columbia Jeanine Pirro spent the week defending her office’s criminal investigation into Federal Reserve Chair Jerome Powell and the Fed’s headquarters renovation project.
The inquiry has rattled financial markets and sparked a fight on Capitol Hill. It focuses on reported cost overruns topping $1 billion and whether Powell misled Congress in sworn testimony.
Pirro, a former Fox News host and a long-time ally of President Donald Trump, said the case is standard oversight, not payback. She was confirmed as U.S. attorney in August 2025 after an interim appointment in May. In an appearance on Fox News’ Hannity on January 14, she said her office tried several times to contact the Federal Reserve over the winter holidays and got no response.
In a post on X late January 13, Pirro wrote that the U.S. Attorney’s Office reached out “on multiple occasions” to discuss cost overruns and Powell’s congressional testimony, then moved to legal process after being ignored.
She added that the legal process “is not a threat.” In interviews, she repeated the same point and said the situation could have been avoided if the Fed had responded to outreach.
The investigation received approval in November 2025. It escalated on January 9, when prosecutors issued grand jury subpoenas seeking documents and testimony tied to Powell’s June 2025 appearance before the Senate Banking Committee.
The renovation of the Federal Reserve’s historic headquarters buildings on the National Mall reportedly rose from about $1.9 billion to $2.5 billion, raising concerns about management decisions and the accuracy of public disclosures.
How the Investigation Started: Missed Replies and Spending Concerns
Pirro has described the probe as a basic push for accountability around taxpayer dollars. In media appearances, she stressed the scale of the overspending, saying it was not “a million” or “ten million” but “a billion dollars” in overruns. She said a gap that large can point to serious problems, including possible fraud or embezzlement, and she pressed for answers on where the money went.
People familiar with the outreach said the U.S. Attorney’s Office sent two emails during the December holidays. Those messages did not include a stated deadline or clearly signal a criminal investigation. After no reply, prosecutors quickly moved to subpoenas.
Pirro has said the steps her office took were based on the facts, and she rejected claims that the probe is tied to the Trump administration’s long-running complaints about Powell and interest rate policy.
Powell Pushes Back, Warns About Fed Independence
Powell responded on January 11 with an unusual video statement, calling the subpoenas “unprecedented” and describing them as an attempt to intimidate the central bank. He linked the investigation to pressure from the White House over monetary policy, saying the threat of criminal charges followed the Fed’s choice to set rates based on its best judgment rather than presidential preference.
Powell said he respects the rule of law and agreed with the idea that no one is above it, including the Fed chair. He also said the Federal Reserve kept Congress fully informed about the renovation project.
Capitol Hill Reaction and Wider Blowback
The investigation has drawn criticism from both parties. Republican senators on the Senate Banking Committee, including Lisa Murkowski and Thom Tillis, have condemned the probe and described it as an effort to push the Fed.
Murkowski called for a congressional review of the Department of Justice. Former Fed Chairs Alan Greenspan, Ben Bernanke, and Janet Yellen, along with other economists, issued a joint statement warning that the case could weaken the central bank’s independence.
Reports have also pointed to frustration inside the Trump administration, with some officials said to be surprised by the subpoenas and upset about a lack of coordination. President Trump has publicly distanced himself, telling NBC News he did not know about the action in advance and that his main concern remains high interest rates.
Pirro has not backed down. On Hannity, she said her office is not attacking the Fed’s independence; it is doing its job. She also pushed back on critics, including some Republicans, arguing that no public official should be treated as off limits to investigators.
What It Could Mean for the Federal Reserve and Economic Policy
The dispute highlights the strain between the executive branch and the Federal Reserve, an agency designed to operate with independence so that monetary policy remains credible. Legal experts have noted that charges such as perjury generally require strong proof that a false statement was intentional, which can be difficult to establish.
As the investigation continues, attention remains on whether the Federal Reserve cooperates in ways that prevent further escalation. Pirro has said she expects Powell’s full cooperation, and she has returned often to her central message: no one is above the law.
The story is moving quickly, with potential effects on financial markets, Fed governance, and the ongoing debate over political influence on economic policy. Lawmakers and market watchers are now waiting to see whether Congress schedules hearings or the Justice Department takes additional steps in the weeks ahead.
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Politics
California Democrats are Panicking Over the 2026 Governor’s Race
SACRAMENTO – In California state where Democrats outnumber Republicans two-to-one, the political establishment is currently grappling with an unthinkable nightmare: a total lockout from the November ballot.
The race to succeed term-limited Governor Gavin Newsom has devolved into a chaotic scramble. With a crowded field of seven major Democratic candidates splitting the liberal vote, the party’s internal anxiety has shifted from “who will win” to “will we even be there?”
Current polling suggests that the state’s unique “top-two” primary system could pave the way for two Republicans—Riverside County Sheriff Chad Bianco and former Fox News host Steve Hilton—to advance to the general election, leaving Democrats on the sidelines for the first time in modern history.
The “Top-Two” Trap
California’s primary system is a “jungle.” Instead of separate party ballots, every candidate runs on a single ticket. The top two finishers, regardless of party, move on to November.
For years, this system favored Democrats, often leading to “Blue vs. Blue” general elections. But in 2026, the math has flipped. While the Republican base has largely consolidated behind two high-profile names, the Democratic vote is being sliced into seven thin pieces.
Current Polling Snapshot (April 2026)
According to recent data from Public Opinion Firm Evitarus, the leaderboard is a statistical dead heat that favors the GOP:
- Chad Bianco (R): 14-16%
- Steve Hilton (R): 14-16%
- Katie Porter (D): 11-12%
- Tom Steyer (D): 11%
“This is a failure of leadership at the top,” said RL Miller, chair of the party’s environmental caucus, in a recent interview with CalMatters. “The idea that we could end up with two Republicans in a state this blue is terrifying.”
The Democratic panic isn’t just about numbers; it’s about a lack of a “clear heir.” Heavyweights like Senator Alex Padilla and former Vice President Kamala Harris opted out of the race. This left a vacuum that has been filled by candidates who are currently more focused on attacking each other than on the looming Republican threat.
- The Swalwell Collapse: Representative Eric Swalwell recently suspended his campaign and resigned from Congress following a series of scandals. His exit was expected to help consolidate the field, but instead, it has only intensified the infighting among the remaining candidates.
- Identity Politics and Infighting: Former Rep. Katie Porter, billionaire Tom Steyer, and San Jose Mayor Matt Mahan are all fighting for the same donor pools and demographics.
- Leadership Silence: Party titans like Nancy Pelosi and Gavin Newsom have stayed silent. Despite pleas from activists to “cull the field” and pressure lower-polling candidates to drop out, the party leadership has refused to intervene.
The Republican California Strategy: A “Tie” is a Win
For Republicans, the path to the governor’s mansion doesn’t require a majority of Californians—it just requires a unified minority.
Steve Hilton, who carries an endorsement from President Donald Trump, and Chad Bianco, a populist law enforcement figure, are running neck-and-neck. Strategists note that as long as they stay tied, they likely soak up enough of the 25% Republican registration to block any single Democrat from reaching the top two spots.
Both GOP candidates are leaning into “cost of living” issues, targeting the California Environmental Quality Act and promising massive tax cuts to woo independent voters who feel the state has become unaffordable under Democratic rule.
If a Republican wins, they would face a deep-blue State Legislature with Democratic supermajorities. While a GOP governor might struggle to pass new laws, their “veto pen” could grind the state’s progressive agenda to a halt.
More importantly, a Republican victory in California would be a psychological earthquake for the national Democratic Party. It would signal that even the most secure “Blue Wall” states are vulnerable when voters feel the sting of inflation, crime, and housing costs.
Key Factors to Watch Before the June Primary:
- The “Drop Out” Pressure: Will lower-tier Democrats like Betty Yee or Xavier Becerra exit the race to save the party?
- Independent Voters: Nearly 22% of California voters are “No Party Preference.” Their shift toward Bianco or Hilton could seal the deal.
- Voter Turnout: Traditionally, lower turnout in primaries favors Republicans.
For now, the mood in Sacramento is one of “paralysis and frustration.” As mail-in ballots prepare to go out, the Democratic Party is holding its breath. If they can’t thin their own herd, they might find themselves watching the most important race in the state from the bleachers.
As one Democratic strategist put it: “We are watching a slow-motion train wreck, and everyone is too polite to tell the drivers to get off the tracks.”
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Politics
Eric Swalwell’s Governor Campaign in Crisis After Multiple Assault Allegations Surface
SACRAMENTO – The race for California’s next governor took a seismic shift Friday as Representative Eric Swalwell’s campaign plummeted into chaos. Two separate investigative reports have surfaced detailing serious allegations of sexual assault and professional misconduct, leading to a mass exodus of campaign staff and a chorus of voices demanding his immediate withdrawal from the contest.
By Friday afternoon, what began as a promising bid to lead the nation’s most populous state appeared to be on the verge of total collapse.
The crisis began with a series of investigative reports published late Thursday and early Friday morning. The reports include testimony from former aides and acquaintances who allege a pattern of inappropriate behavior spanning several years.
One report details an incident of alleged sexual assault involving a former campaign volunteer during a 2022 fundraising event. A second report outlines multiple accounts of “predatory” professional misconduct, with several women describing an environment where career advancement was allegedly tied to personal favors.
While the Congressman has long been a fixture in national politics—known for his frequent cable news appearances and high-profile role in impeachment proceedings—these new allegations have created a political firestorm that transcends his usual partisan battles.
Eric Swalwell’s Campaign in Freefall
The internal reaction to the news was swift and devastating. By Friday morning, at least six senior staffers, including his campaign manager and communications director, had tendered their resignations.
In a joint statement, several departing aides expressed their inability to continue their work:
“We joined this campaign because we believed in a vision for California’s future. However, the nature of the allegations brought to light today is inconsistent with the values we hold. We can no longer, in good conscience, represent this candidacy.”
The loss of top-tier talent leaves the Swalwell operation without a functional leadership structure at a critical juncture in the primary cycle.
The political fallout has not been limited to internal staff. In California, where the Democratic Party holds a supermajority, the “blue wall” of support for Swalwell is rapidly crumbling.
Calls for Withdrawal
- Prominent Allies: Several high-ranking members of the California Democratic delegation, who had previously endorsed Swalwell, issued a “wait-and-see” stance earlier in the day before eventually calling for him to step aside to “allow the party to heal.”
- Gubernatorial Rivals: Rival candidates were more direct. State Senator Aisha Wahab and Lieutenant Governor Eleni Kounalakis both issued statements Friday suggesting that the allegations make Swalwell’s continued presence in the race a “distraction” from the needs of Californians.
- Advocacy Groups: Women’s rights organizations and political action committees that typically support Democratic candidates have frozen their funding and called for an independent investigation.
Swalwell’s Response
Representative Swalwell’s office released a brief, defiant statement Friday afternoon. In it, the Congressman denied the most severe allegations, calling them “politically motivated attacks” intended to derail his momentum.
“I have spent my career fighting for justice and the rule of law,” the statement read. “I am deeply saddened by the departure of my staff, but I intend to stay in this race and allow the facts to come out. I ask for the public to reserve judgment until the full story is told.”
Despite the defiance, political analysts suggest the path forward is nearly non-existent. With no campaign infrastructure and a rapidly evaporating donor base, the logistics of a statewide run become nearly impossible.
The 2026 California Gubernatorial race is already one of the most expensive and watched contests in the country. With Governor Gavin Newsom termed out, the field is crowded with ambitious Democrats.
If Swalwell exits the race, it would trigger a massive realignment of endorsements and campaign contributions. Political strategist Marcus Thorne noted that the “Swalwell lane”—which focused on gun control and tech-forward policy—is now wide open.
“This isn’t just about one man anymore,” Thorne said. “This is about the integrity of the Democratic primary. If he stays in, he risks dragging the entire party down with him in a year where every vote counts.”
The coming days will be decisive. California’s filing deadlines are approaching, and the pressure from the Democratic National Committee (DNC) is reportedly intensifying behind the scenes.
For now, the Congressman remains in the race, but he finds himself increasingly isolated on a political island. As the sun set over the State Capitol on Friday, the question among Sacramento insiders was no longer if Swalwell would exit, but when.
Key Takeaways from the Friday Crisis:
- Two Investigative Reports: Allegations include sexual assault and workplace misconduct.
- Mass Resignations: Key leadership, including the Campaign Manager, has quit.
- Bipartisan Pressure: Both allies and rivals are demanding he end his bid for Governor.
- Political Vacuum: A Swalwell exit would shift millions of dollars in potential donations to other candidates.
The scandal marks a stunning turn for a politician who once sought the Presidency and has been a leading voice in the House of Representatives. In the fast-moving world of California politics, the next 72 hours will likely determine if Eric Swalwell’s political career can survive or if this is the final chapter.
Related News:
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Politics
New York Governor Hochul Slammed For Begging Rich to Return
NEW YORK – Governor Kathy Hochul faces criticism from both sides of the aisle. She recently urged wealthy people who fled the state to come back. However, folks still remember her 2022 campaign remarks. Back then, she told opponents to grab a bus ticket to Florida.
This change fuels charges of inconsistency. It also spotlights New York’s shrinking tax base. The state struggles to fund its big social programs as a result.
At a Politico event this month, Hochul discussed state finances. She rejected New York City Mayor Zohran Mamdani’s push for higher taxes on the rich. Instead, she stressed the need to keep or attract high earners.
“We need high-net-worth people to back our generous social programs,” she said. Some patriotic millionaires already pay extra, she noted. Then she added a key point. “First, let’s head to Palm Beach and convince some to return home. Our tax base has shrunk too much.”
Hochul admitted that other states offer lower taxes for people and businesses. Data backs this up. Many rich New Yorkers have moved to Florida, Texas, and similar spots in recent years.
Critics point to her words from four years ago. Hochul campaigned against Republican Lee Zeldin. She aimed barbs at Donald Trump and Dutchess County Executive Marc Molinaro.
“Trump, Zeldin, and Molinaro should jump on a bus to Florida where you fit. Get out of town. You don’t match our values,” she declared.
Now, people say those comments pushed conservatives and tax-weary wealthy folks to leave. Many packed up for warmer, cheaper states. Social media lights up with side-by-side videos of her old rant and new appeal. Commentators call it desperate or a total reversal. Budget woes drive the shift, they claim.
New York’s Tax Base Challenges
The state counts on top earners for most income tax revenue. A few percent of residents cover a huge chunk. When they go, schools, health care, transit, and services suffer big losses.
IRS data shows an outflow of rich people and workers. Palm Beach County in Florida draws a lot of that wealth.
Hochul’s camp highlights New York’s strengths in finance, tech, culture, and business. Still, they recognize the competition. Florida’s no-income-tax policy and lower living costs pull people away.
Several factors fuel this exodus, reports show. High income taxes lead the pack since New York tops national rates. Housing, utilities, and daily costs stay sky-high, especially near the city. Remote work after COVID lets pros relocate easily. Policy clashes over crime, schools, and rules send some packing. Plus, many skipped town during pandemic lockdowns and stayed gone.
Reactions Roll In from New Yorkers
Responses hit fast and hard. Nassau County Executive Bruce Blakeman, a Republican running for governor, dubbed it Hochul’s most honest moment. He mocked the pitch to swap Palm Beach sunshine, no state tax, and calm for New York’s issues. Cut taxes and costs instead of pleading, he advised.
Conservatives and business leaders agree. They push for tax cuts, fewer rules, and safer streets to compete. Appeals to patriotic millionaires won’t cut it, they say.
Some Democrats back her, though. They view it as facing facts. A wide tax base funds key services without slamming one group. The state offers incentives to lure businesses and people, they add. Online, memes mock the flip. “Come back, we need your tax money” pops up everywhere.
Bigger Picture: Blue State Exodus
New York isn’t unique. California and Illinois lose residents and firms to low-tax red states, too. This trend stirs national debates. Experts warn of a downward spiral. Fewer taxpayers force rate hikes. That chases away more people.
Hochul resists broad tax hikes on the rich during budget battles. She wants the state to stay competitive. Yet progressives like Mamdani demand more from top earners. Her words seek balance. Keep taxes fair and draw back high earners. With re-election looming, this topic matters. Voters watch budget moves, the economy, and daily life.
Tax-cut fans urge affordable homes, safe streets, cheap energy, and pro-business rules. Left-leaning critics want steeper taxes on the rich and bigger social spending.
Regular New Yorkers ask why people left and what pulls them back for good. Hochul reopened that talk publicly. Her Palm Beach plea may fall flat without policy fixes. Reactions so far scream too late. The next months will show if migration reverses or wealth keeps flowing out. Her mixed signals leave some confused and others mad.
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