DOJ Drops Powell Investigation, Clearing Path for Warsh as Next Fed Chair

U.S. Attorney Jeanine Pirro ends criminal investigation into Jerome Powell, resolving the deadlock in the Senate Banking Committee over Kevin Warsh’s nomination.

By: AXL Media

Published: Apr 27, 2026, 7:07 AM EDT

Source: Bisnow

Resolution of the Senate Deadlock

The probe's closure follows a strategic blockade by Republican Senator Thom Tillis (R-NC). Tillis, a key member of the Senate Banking Committee, had vowed to withhold his vote necessary for a Republican majority on the panel until the "bogus" investigation into Powell was resolved.

The Breakthrough: Following assurances from the DOJ, Tillis confirmed on Meet the Press that he is now prepared to vote for Warsh, stating that he wanted to ensure the department was not being used as a "weapon" to threaten Fed independence.

Confirmation Timing: With the deadlock broken, the committee is expected to advance Warsh’s nomination to the full Senate this week.

The Powell Renovation Probe

U.S. Attorney for the District of Columbia Jeanine Pirro had been investigating cost overruns at the Fed’s headquarters, which reportedly rose from $1.9 billion to $2.5 billion.