Trump overrules DOJ on tarmac, keeps $2.5B probe into Powell alive: 'It's not dropped'

PALM BEACH, FL: President Donald J Trump on Saturday, April 25, publicly contradicted the Justice Department’s position on the Federal Reserve probe, stating that the criminal investigation into Chair Jerome Powell is “not dropped.”

The remarks came on the tarmac as Trump prepared to return to Washington, less than 24 hours after US Attorney Jeanine Pirro said her office had moved to close the case.

“Well, I wanna find out — you know, it’s not dropped,” Trump told reporters. While calling Pirro “fantastic,” the president said questions remain over the cost of a Federal Reserve renovation project that has drawn scrutiny.

The Federal Reserve has confirmed the project is estimated at $2.5 billion, citing factors including a sinkhole, asbestos removal, and higher material costs. 

Trump, however, argued the figure could reach “$4 billion” and questioned how such costs escalated from what he said could have been a $25 million project.

President rejects Jeanine Pirro's investigation closure

Trump’s remarks signaled a clear divergence from the Justice Department’s latest position. Pirro had indicated that the probe would be closed unless new evidence emerged, but the president suggested the issue remains unresolved.

“I want to find out how can a building of that size cost four — whatever it’s going to be — nobody knows, by the way, what it’s going to be,” Trump said.

He also drew comparisons to other large-scale infrastructure spending, referencing California’s high-speed rail project, which he criticized as a “disaster.” 

Trump pointed to his experience in real estate, noting that he developed the Waldorf-Astoria in Washington, DC, for $201 million, arguing that a hotel project involves more complex construction than an office building.

White House-Fed tensions rise amid ongoing investigation

The investigation, first reported in January, has added pressure to an already tense relationship between the White House and the Federal Reserve.

Powell recently issued a rare public statement warning that legal scrutiny of the central bank could be perceived as an attempt to influence monetary policy decisions.

The timing is significant as Powell’s term as Fed Chair is set to expire on May 15. However, he may continue serving as a governor until January 2028, which would allow him to retain a vote on interest rate decisions even after stepping down as chair.

The ongoing scrutiny has intensified debate over the independence of the Federal Reserve, particularly as the administration has repeatedly called for lower interest rates.

Thom Tillis maintains blockade over Kevin Warsh nomination

Meanwhile, the nomination of Kevin Warsh, Trump’s choice to succeed Powell, remains stalled in the Senate. Senator Thom Tillis has blocked movement on the nomination, stating that the investigation into Powell must be fully resolved before proceeding.

With a narrow 13–11 Republican majority on the Senate Banking Committee, Tillis’ position has effectively delayed the confirmation process.

Trump, however, expressed confidence that Warsh would ultimately be confirmed, saying he expected a “smooth” path once the issue is settled.

The president reiterated that scrutiny of the Federal Reserve project is necessary, stating, “Somebody has to find out why that building that should have cost $25 million is costing billions of dollars.”