DOJ abruptly closes probe into Fed Chair Powell, clearing path for President Trump’s nominee Kevin Warsh amid questions of political pressure and institutional independence.
Story Highlights
- Department of Justice ends criminal investigation into Jerome Powell over cost overruns in Fed headquarters renovation.
- Closure removes Senate block by Republican Sen. Thom Tillis on Trump’s Fed Chair nominee Kevin Warsh.
- No evidence of wrongdoing found; matter referred to the Federal Reserve’s internal inspector general.
- Powell’s term ends in May 2026; Warsh’s confirmation now advances despite the Senate recess looming.
- Raises concerns over DOJ and Fed independence from political influence.
DOJ Announces Probe Closure
U.S. Attorney Jeanine Pirro directed her office to close the criminal investigation into Federal Reserve Chair Jerome Powell on April 24, 2026. The probe focused on alleged cost overruns at the Fed’s Washington headquarters renovation project. Pirro referred the matter to the Federal Reserve’s inspector general, who has examined it since July 2025.
She stated her office stands ready to restart if new facts emerge. This decision follows a March 2026 ruling by D.C. District Judge James Boasberg rejecting DOJ subpoenas.
Senate Block Lifted for Warsh
Republican Senator Thom Tillis, a key Senate Banking Committee member, blocked all Fed nominees until the Powell investigation resolved. Tillis called the probe “bogus” and urged its end. The closure now enables Warsh’s confirmation process to proceed.
President Trump nominated Warsh to replace Powell, whose term expires in May 2026. Powell agreed to stay until a successor confirms. The Trump administration expects swift Senate action despite an approaching recess.
Investigation Background and Findings
The probe originated from President Trump’s accusations of improper handling of Fed renovations. The Federal Reserve confirmed costs came from its own funds, not taxpayer money. No criminal charges filed against Powell or the Fed.
Investigators found no evidence of wrongdoing. Judge Boasberg’s ruling weakened the DOJ’s tools, prompting Pirro’s office to persist initially before closing. The inspector general continues internal review of overruns.
DOJ drops Powell probe, smoothing path for Warsh to lead Fed https://t.co/dDY7dCfw6D pic.twitter.com/pavDank6mk
— Financial Post (@financialpost) April 25, 2026
Senator Tillis previously warned of Trump administration efforts undermining Fed independence. Critics question DOJ credibility and potential political pressure to drop the probe. This resolution achieves a Trump personnel goal but fuels perceptions of elite influence over institutions meant to serve average Americans.
Implications for Fed Leadership
Warsh’s confirmation shifts Fed policy potential under Trump. Short-term, it ends Powell’s interim holdover. Long-term, it may alter monetary direction amid economic pressures like inflation from past fiscal mismanagement.
Americans frustrated by overspending and wary of growing divides share distrust in federal agencies beholden to political elites. This move reinforces calls for limited government and accountability, echoing founding principles of checks against power concentration.
Sources:
DOJ expected to drop criminal probe of Fed Chair Jerome Powell
Justice Department drops criminal probe of Fed Chair Jerome Powell
