DOJ Ends Powell Probe Amid Warsh Fed Nomination US
IG takes review as Senate weighs Warsh Fed pick
The U.S. Department of Justice on Friday ended its criminal investigation into Federal Reserve Chair Jerome Powell, removing a significant procedural obstacle to the Senate’s consideration of President Donald Trump’s nominee Kevin Warsh as Powell’s potential successor.
Jeanine Pirro, the U.S. Attorney for the District of Columbia, announced on the social media platform X that her office would discontinue the investigation. This decision came shortly after Warsh appeared before the Senate Banking Committee for his confirmation hearing earlier in the week.
Just days before, Pirro had indicated that the investigation would continue. However, the inquiry had recently faced a setback after a federal court invalidated subpoenas issued by her office to the Federal Reserve, limiting the scope of the probe.
Senator Thom Tillis, a Republican from North Carolina and member of the Banking Committee, had reportedly withheld support for moving forward with Warsh’s confirmation vote until the investigation into Powell was resolved.
In her statement, Pirro said that responsibility for reviewing the Federal Reserve’s multibillion-dollar headquarters renovation project would now shift to the institution’s inspector general. She noted that the inspector general had been formally asked to conduct an independent review of the cost overruns associated with the project.
The renovation has been under scrutiny for several months, with the Federal Reserve’s inspector general already conducting an ongoing review initiated last year. Pirro had previously cited both the construction project and Powell’s congressional testimony regarding its costs as the basis for her office’s investigation.
Federal Reserve Chair Jerome Powell has previously stated that criticism of the renovation project contributed to the decision to request an inspector general review. He also noted that the inspector general had previously examined related renovation processes and procurement procedures in earlier audits.
A spokesperson for the inspector general confirmed on Friday that the office is actively working to complete its evaluation of the Federal Reserve’s building renovation project. The findings will be published and shared with Congress upon completion.
Pirro emphasized that her office retains the authority to reopen a criminal investigation if future findings warrant further legal action. She also stated that the inspector general’s office has the necessary authority to ensure accountability and transparency in the review process.
White House spokesperson Kush Desai said that taxpayers deserve clarity regarding the Federal Reserve’s spending and expressed confidence that the inspector general is best positioned to conduct an independent assessment. He also reiterated the administration’s expectation that the Senate would move forward promptly with Warsh’s confirmation.
The Federal Reserve declined to comment on the matter.
Senator Tim Scott, chairman of the Senate Banking Committee, stated that the Federal Reserve’s cost overruns require thorough oversight. He welcomed the inspector general’s continued review and requested that the office brief the committee within 90 days. Scott emphasized the importance of transparency and fiscal accountability, stating that monetary policy institutions should prioritize price stability and sound management.
Senator Elizabeth Warren, the committee’s top Democrat, criticized the decision to end the investigation. She argued that the move was politically motivated and intended to facilitate Warsh’s confirmation as Federal Reserve Chair.
Warren also raised concerns about ongoing federal scrutiny of other Federal Reserve officials, noting that separate investigations remain active. She warned that political pressure on the Federal Reserve could undermine its independence and stated that the Senate should not proceed with Warsh’s nomination under current circumstances.
She further argued that attempts to influence the Federal Reserve’s leadership reflect broader concerns about political interference in monetary policy decisions, including interest rate policy disagreements between the administration and the central bank.
The Senate Banking Committee is expected to continue reviewing the nomination process alongside the inspector general’s ongoing examination of the Federal Reserve’s renovation project.
Source: https://www.cnbc.com/2026/04/24/fed-powell-doj-war