DOJ ends probe into Fed Chair Jerome Powell, clears path for Trump ally Kevin Warsh
WASHINGTON, DC: The Justice Department on Friday, April 24, dropped its criminal investigation into Federal Reserve Chair Jerome Powell, a move that could advance President Donald Trump’s nominee to lead the central bank.
The decision follows weeks of political and legal disputes over the probe, which focused on cost overruns in a renovation project at the Fed’s headquarters.
US Attorney for Washington, DC, Jeanine Pirro said the Federal Reserve’s internal watchdog would instead review the matter.
The development removes a key obstacle to confirming Trump’s pick, Kevin Warsh.
DOJ drops probe, boosting Trump’s fed nominee
The Justice Department’s decision to end its investigation into Jerome Powell is expected to clear the way for Kevin Warsh, President Trump’s nominee to chair the Federal Reserve, to move closer to Senate confirmation.
Pirro announced the move in a post on X, stating, “accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry.”
She added, “Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.”
This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers.
— US Attorney Pirro (@USAttyPirro) April 24, 2026
The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I…
The investigation had centred on alleged cost overruns tied to a multi-billion-dollar renovation of the Federal Reserve’s Washington headquarters.
However, federal prosecutors previously indicated they did not have evidence of criminal wrongdoing.
The probe had become a central point of contention in Washington, with Trump repeatedly criticising Powell over monetary policy decisions and raising concerns about the renovation project. Powell, whose term ends next month, has denied wrongdoing and previously described the investigation as an attempt to exert political pressure on the central bank.
The Federal Reserve declined to comment on the decision.
Senate standoff eases; Fed watchdog takes over
The end of the investigation addresses objections raised by Senator Thom Tillis, a key member of the Senate Banking Committee, who had blocked Warsh’s nomination while the probe remained active.
Tillis had described the investigation as “bogus” and indicated he would not support moving forward until it was dropped.
With the probe now closed, Warsh’s nomination is expected to advance toward a confirmation vote.
The narrowly divided Senate committee had been unable to proceed due to unified Democratic opposition and Tillis’s hold.
Pirro said the Federal Reserve’s inspector general has been asked to review the renovation project and its associated costs.
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” she said, adding she expects “a comprehensive report in short order.”
The inspector general has previously reviewed the project and found no wrongdoing, and Powell himself requested another review in 2025 amid continued scrutiny.
The investigation had also faced legal challenges. A federal judge had quashed subpoenas issued by prosecutors, limiting the scope of the inquiry and raising questions about its viability.
