The Department of Justice (DOJ) announced Friday it has dropped a criminal probe into Federal Reserve Chairman Jerome Powell regarding the central bank’s major building renovations.
U.S. Attorney for the District of Columbia Jeanine Pirro wrote in a post to X that the Inspector General for the Fed “has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers.” She added that “accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry.”
“Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so,” Pirro continued.
Pirro said she expects to receive “a comprehensive report in short order,” adding she feels “confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas.”
“American taxpayers deserve answers about the Federal Reserve’s fiscal mismanagement, and the Office of the Inspector General’s more powerful authorities best position it to get to the bottom of the matter,” White House Spokesman Kush Desai told the Daily Caller News Foundation in a statement on Friday. “The White House remains as confident as before that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman to finally restore competence and confidence in Fed decision-making.”
The Fed declined to comment.
The move paves the way for President Donald Trump’s nominee to succeed Powell as the next Fed chair, Kevin Warsh, to move forward toward a Senate confirmation vote. Retiring Republican North Carolina Sen. Thom Tillis previously pledged to block Warsh’s nomination unless the DOJ dropped its probe into Powell, referring to the investigation as “bogus.”
In July 2025, Republican Florida Rep. Anna Paulina Luna referred Powell to the DOJ over perjury allegations tied to his June testimony before the Senate Banking Committee. The U.S. Attorney’s Office for the District of Columbia launched a criminal investigation into the Fed chair in January over the soaring cost of renovating the Federal Reserve headquarters, which surpassed earlier estimates of $2.5 billion.
During a CNBC interview earlier this week, Senate Banking Committee Chairman Tim Scott suggested ending the criminal investigation into Powell and instead handing the issue over to Congress, the outlet reported on Friday. Scott also claimed he thought Powell “was incompetent, not criminal,” according to CNBC.
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