Criminal probe into Federal Reserve chairman Jerome Powell is ending, U.S. Justice Dept. says
Reuters | Posted: April 24, 2026 2:56 PM | Last Updated: 4 hours ago
Widely criticized investigation threatened to delay confirmation of Trump’s pick for successor
The Justice Department is closing its investigation into cost overruns in renovations at the Federal Reserve under chairman Jerome Powell, U.S. Attorney Jeanine Pirro said on Friday.
Pirro said the Inspector General of the Federal Reserve has now been asked to scrutinize the building costs.
However, Pirro said she “will not hesitate to restart a criminal investigation should the facts warrant doing so.”
A federal judge last month blocked subpoenas to the Fed’s board of governors, finding they were issued for the improper purpose of pressuring Powell to cave to U.S. President Donald Trump’s demands to rapidly lower interest rates or resign. As recently as this week, Pirro had vowed to appeal the ruling and continue the investigation.
Powell’s term as chair is set to expire May 15.
The Pirro investigation had stiffened Powell’s attitude toward remaining in a Fed governor’s seat that extends to 2028, the last full year of Trump’s presidency. Fed chiefs traditionally depart the board as well when their leadership terms end.
Trump administration threats against Powell, including the criminal investigation, were threatening to delay the Senate confirmation of Kevin Warsh, Trump’s nominee to succeed Powell.
North Carolina Sen. Thom Tillis, a Republican member of the Senate’s banking committee, has said he regarded the probe as a frivolous assault on the Fed’s independence and would block Warsh’s confirmation until it is dismissed.
Democrat Warren unimpressed by announcement
“Anyone who believes Donald Trump’s corrupt scheme to take over the Fed is over is fooling themselves,” said Warren, a Democrat from Massachusetts.
Warsh, a former Fed governor between 2006 and 2011, said “monetary policy independence is essential,” in comments Tuesday to U.S. senators.
Warsh, 57, also said he had made no promises to Trump about cutting interest rates. Just before that Senate hearing, Trump had told CNBC he would be disappointed if a rate cut didn’t immediately occur under Warsh’s stewardship.
During his testimony on Tuesday, Warsh blamed the central bank under Powell for an inflation surge in the wake of the COVID-19 pandemic that he said continues to hurt U.S. households.