Justice Department Ends Criminal Investigation of Federal Reserve Chair Jerome Powell The Justice Department has dropped its criminal investigation into Federal Reserve Chair Jerome Powell over alleged cost overruns in the Fed’s building renovations, according to multiple reports released on April 24, 2026. The decision removes a significant legal hurdle in the path of President Donald Trump’s nominee to succeed Powell, Kevin Warsh, whose confirmation has faced opposition from some Senate Republicans. U.S. Attorney Jeanine Pirro for the District of Columbia directed her office to close the probe, stating that any further examination would be handled internally by the Federal Reserve’s Office of the Inspector General. Pirro emphasized that she would not hesitate to restart a criminal investigation should new evidence warrant such action. The investigation stemmed from longstanding criticism by Trump, who has repeatedly questioned the expense of the Fed’s headquarters renovation project and has publicly called for lower interest rates since returning to office in 2025. Trump had previously floated the idea of removing Powell before the end of his term, a move some legal experts said could face significant challenges. With the criminal probe concluded, the focus shifts to the Senate confirmation process for Kevin Warsh, who was sworn in during a nomination hearing before the Senate Banking, Housing and Urban Affairs Committee on April 21, 2026. Senator Thom Tillis of North Carolina had conditioned his support for Warsh on the termination of the investigation into Powell, a condition now met. The Federal Reserve declined to comment on the Justice Department’s decision, while the Inspector General’s office confirmed it is actively working to complete its review of the building renovation costs and plans to produce the results available to the public and Congress upon completion. Powell’s current term as Federal Reserve Chair is set to expire soon and the leadership transition remains a focal point of economic policy discussions in Washington. The resolution of the investigation clears the way for a potential shift in Federal Reserve leadership under the Trump administration, though the ultimate direction of monetary policy will depend on the views and actions of the eventual chair.
1