DOJ drops probe into Fed chair Powell, potentially clears path for Kevin Warsh’s confirmation

The US Department of Justice has dropped a criminal investigation into the Federal Reserve and its chair, Jerome Powell, over a renovation project at the central bank’s Washington headquarters.

The move comes even as scrutiny around the project’s ballooning costs continues.

“This morning the Inspector General for the Federal Reserve has been asked to scrutinise the building costs overruns – in the billions of dollars – that have been borne by taxpayers,” said US Attorney for DC Jeanine Pirro in a post on X.
“Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry,” she added, while cautioning that authorities would “not hesitate to restart a criminal investigation should the facts warrant doing so.”

Notably, the Federal Reserve’s Inspector General has already reviewed the project twice and found no wrongdoing. The watchdog was asked to revisit the matter in 2025 by Powell amid sustained pressure from US President Donald Trump and his allies.

Also read: Judge rejects DOJ subpoenas of Fed Board in Powell case

The development potentially clears the path for Kevin Warsh’s confirmation, as the Trump nominee moves closer to a Senate vote to chair the Federal Reserve.