Justice Department drops criminal investigation into Federal Reserve Chair Jerome Powell

WASHINGTON (Gray DC) – The Justice Department (DOJ) is dropping its criminal investigation into Federal Reserve Chair Jerome Powell.

The announcement came from U.S. Attorney for the District of Columbia Jeannine Pirro, who said Friday her office was ending the probe because the Fed’s inspector general would take it over.

On social media, Pirro wrote, “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.”

President Donald Trump accused Powell of improperly handling renovations at the Fed’s headquarters. The DOJ found no evidence of wrongdoing.

Powell’s term as chair expires next month, and Friday’s move paves the way for the Senate to confirm his replacement.

Trump says he wants Kevin Warsh — a former Fed governor and Wall Street banker — to be the next head of the Fed.

Multiple Senate Republicans were pushing the White House to drop the probe so they could work on getting Warsh confirmed.

“I think the sooner the administration can wrap up this investigation and get ready to move forward with a new Fed chairman, the better off everybody will be,” said Sen. John Thune, the Senate majority leader.

Press Secretary Karoline Leavitt told reporters Friday the investigation into Powell has been a priority for the president.

“The case is not necessarily dropped. It’s just being moved over to the Inspector General, who has critical tools at their disposal to continue to look into the financial mismanagement at the Fed,” Leavitt said. “So the investigation still continues. It’s just under a different authority, and that’s what you’ll continue to see.”

Powell’s term as chair ends in May, but he could still remain on the Fed’s board. He serves a separate term as a governor, which lasts until January 2028.

If Powell stays, that would prevent Trump from filling another seat.