The U.S. Attorney’s Office for the District of Columbia has closed its criminal investigation into Federal Reserve Chair Jerome Powell, effectively removing a major obstacle to Kevin Warsh’s nomination as Powell’s successor. The probe, which focused on cost overruns for the renovation of the Fed’s Washington headquarters, has been referred to the Federal Reserve’s inspector general for further scrutiny.
Jeanine Pirro, the U.S. Attorney for D.C., announced the decision Friday on X, stating, "The IG has the authority to hold the Federal Reserve accountable to American taxpayers." The renovation costs, which ballooned from $1.9 billion in 2023 to $2.5 billion in 2025, have drawn bipartisan criticism for their impact on taxpayers.
Political Implications
The closure of the investigation could pave the way for Kevin Warsh, President Donald Trump’s pick to replace Powell, to advance through the Senate Banking Committee. Sen. Thom Tillis (R-NC), who had vowed to block Warsh’s confirmation while the DOJ probe remained open, called the investigation "weak" and "frivolous." With Republicans holding a narrow 12-10 majority on the committee, Tillis’s opposition had created a deadlock.
"Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so," Pirro cautioned.
Powell, whose term as chair expires May 15, has dismissed the probe as a pressure tactic to force the Fed to accelerate interest rate cuts. He has indicated he will remain on the Fed Board of Governors until the investigation is "well and truly over," a status Pirro’s announcement leaves ambiguous.