Justice Department Closes Investigation into Fed Chairman Jerome Powell

Sat Apr 25 2026 04:06:16 GMT+0000 (Coordinated Universal Time)

The US Justice Department has officially abandoned an investigation into Jerome Powell, the Chairman of the Federal Reserve, over suspected cost overruns related to building renovations.

The US Justice Department has ended its investigation into Federal Reserve Chairman Jerome Powell regarding alleged excessive building renovation costs. Instead, an internal review by the Fed's inspector general will proceed. President Trump has criticized the renovation expenses, leading to political tensions. Despite the closure of the criminal probe, internal scrutiny continues as Powell's term nears its conclusion.

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 would be an internal investigation led by the central bank's inspector general.

President Donald Trump has publicly criticized the cost of the Fed's building renovations, a topic that has fueled tensions with Powell.

As Powell’s term approaches its end, the US Senate is evaluating Trump’s nomination of Kevin Warsh for his replacement. Notably, Republican Senator Thom Tillis has withheld support for Warsh unless the Trump administration dropped the 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, remarked White House spokesman Kush Desai.

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.

In her comments on X, Pirro indicated a willingness to restart a criminal investigation should the facts merit it.

The Fed declined to comment on the situation at this time.

Regarding the internal probe, the inspector general's office affirmed it is actively working to complete our review, and look forward to making the results available to the public and Congress upon completion, but they did not provide a timeline.

Trump has previously called for the Fed to lower interest rates, expressing dissatisfaction with Powell's leadership and even branding him a knucklehead in past remarks.

The renovations in question pertain to the Eccles and 1951 Constitution Avenue buildings, which are undergoing significant updates for the first time since originally constructed in the 1930s, including the removal of asbestos and lead contamination.

Powell was initially nominated by Trump for his role at the Federal Reserve in 2017, and as his term expires on May 15, he intends to remain until Warsh's confirmation.