Federal Investigation into Jerome Powell Concludes Without Charges

Fri Apr 24 2026 18:14:44 GMT+0000 (Coordinated Universal Time)

The US Justice Department has decided to drop its investigation into Federal Reserve Chairman Jerome Powell regarding alleged financial misconduct related to building renovation costs.

The US Justice Department has concluded its investigation into Jerome Powell, the chair of the Federal Reserve, concerning alleged cost overruns on building renovations. While the DOJ's probe is over, an internal investigation will proceed under the oversight of the Fed's inspector general. The matter has seen heated exchanges, particularly from President Trump, who questioned the renovation expenses amidst ongoing tensions with Powell's leadership. As Powell's term comes to an end, the Senate is considering President Trump's nominee for his successor, Kevin Warsh, amidst political maneuvering related to the investigation.

The US justice department is dropping its investigation into the Federal Reserve chairman, Jerome Powell, over alleged building cost overruns.

US Attorney Jeanine Pirro stated that instead, there will be an internal investigation led by the central bank's inspector general.

President Donald Trump has criticized the cost of the Fed's building renovations, claiming they were excessively high, as part of a long-standing feud with Powell.

Powell's term is nearing its end, and the US Senate is currently considering Trump's nominee for his replacement, Kevin Warsh. Key Republican Thom Tillis has withheld support for Warsh unless the Trump administration drops its investigation into Powell.

American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement, and the Office of the Inspector General's more powerful authorities best position it to get to the bottom of the matter, said White House spokesman Kush Desai in a statement.

The White House remains as confident as before that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman to finally restore competence and confidence in Fed decision-making, he added.

Previously, Trump had called for the Fed to lower interest rates and threatened to fire Powell after returning to office last year.

The investigation initially stemmed from Trump’s public criticism regarding the renovation costs, reported to be about $3.1 billion—higher than the Fed's estimate of $2.5 billion. The Fed has insisted these renovations are critical for long-term cost savings.

Powell described the investigation as unprecedented, suggesting it was motivated by Trump's frustrations over the Fed's reluctance to lower interest rates despite ongoing pressure from the administration.

This marked a notable moment for Powell as he publicly defended the Federal Reserve's independence, emphasizing that monetary policy should not be dictated by political pressures.

The buildings included in the renovation are the Eccles and 1951 Constitution Avenue, undergoing significant updates to remove harmful materials and modernize facilities.

Powell, appointed by Trump in 2017, plans to stay in his position until Warsh's confirmation by the Senate, with his term officially ending on May 15.