Justice Department drops probe of Fed's Jerome Powell
April 24 (UPI) -- The Justice Department on Friday announced it's pausing its investigation of Federal Reserve Chairman Jerome Powell, clearing the way for his replacement's confirmation.
U.S. Attorney Jeanine Pirro said the Justice Department has also asked the Inspector General for the Federal Reserve to probe the building costs to remodel the Fed's headquarters, which is over budget "in the billions of dollars -- that have been borne by taxpayers."
"The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas," she said in a post on X.
"Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so."
The Justice Department launched a criminal investigation into Powell in January after President Donald Trump took him to task for being over budget on the renovations. Congress also subpoenaed Powell and the Fed in January, threatening him with criminal charges over testimony he gave about the costs.
Powell accused the Trump administration of using the testimony as a pretext to punish him for failing to set federal interest rates based on Trump's preferences.
The Justice Department investigation sparked condemnation by former Federal Reserve heads and members of Congress. Sen. Thom Tillis, R-N.C., said he would vote against any of Trump's nominees to replace Powell "until this legal matter is fully resolved."
Confirmation hearings in the Senate to consider the nomination of Kevin Warsh as the new chairman of the Fed began this week. Warsh told senators -- some of who appeared skeptical -- that he would maintain independence from Trump.
Copyright 2026 UPI News Corporation. All Rights Reserved.
This story was originally published April 24, 2026 at 9:30 AM.