The U.S. Department of Justice closed its criminal investigation into the Federal Reserve and Chair Jerome Powell over a Washington headquarters renovation project, federal prosecutors announced Friday.
The investigation, which examined cost overruns in the billions of dollars borne by taxpayers, was halted at the request of the D.C. U.S. Attorney’s office, Jeanine Pirro stated in a post on X.
Pirro said her office would not restart the probe unless new evidence emerged, while deferring to the Federal Reserve’s internal watchdog for further review.
The Federal Reserve’s inspector general will reassess the renovation project
The Federal Reserve’s Office of Inspector General has been asked to re-examine the building cost overruns, which have already been reviewed twice without findings of wrongdoing.
Chair Powell requested the renewed review in 2025 amid sustained pressure from President Donald Trump and his allies, according to the Justice Department’s statement.
Senator Thom Tillis has blocked Kevin Warsh’s nomination over the probe
The Justice Department’s decision clears a path for Trump’s nominee, Kevin Warsh, to advance toward a Senate confirmation vote for Fed chair.
Senator Thom Tillis, a Republican from North Carolina, has delayed Warsh’s nomination since Trump announced it, citing what he called a “bogus” investigation into Powell’s conduct.
Tillis and other lawmakers have maintained there was no evidence Powell committed a crime related to the renovation project.
Why did the Justice Department drop the investigation?
The department said it was closing the case to allow the Federal Reserve’s inspector general to lead the inquiry into cost overruns, which had already been reviewed twice without finding misconduct.
What happens next for Kevin Warsh’s nomination?
With the criminal probe closed, Senator Thom Tillis’s primary objection to Warsh’s nomination is removed, potentially allowing the Senate to move forward on a confirmation vote, though no date has been set.
