Justice Department Ends Criminal Probe into Fed Chair Jerome Powell, Clearing Confirmation Path for Successor Kevin Warsh

U.S. Attorney Jeanine Pirro ends the criminal probe into Fed Chair Jerome Powell, handing the renovation cost inquiry to the IG and unblocking Kevin Warsh's confirmation.

By: AXL Media

Published: Apr 24, 2026, 4:56 PM EDT

Source: The information in this article was sourced from CBS News

A Sudden Resolution to a High-Stakes Investigation

In a major shift for the U.S. financial and legal landscape, federal prosecutors have officially terminated their criminal investigation into Federal Reserve Chairman Jerome Powell. U.S. Attorney Jeanine Pirro announced the decision via social media, stating that the inquiry will now be handled by the Fed's Office of the Inspector General (IG). The move marks the end of a turbulent chapter for the central bank, which saw its leadership embroiled in a grand jury probe regarding cost overruns in the multibillion-dollar renovation of its Washington, D.C., headquarters.

Unblocking the Confirmation of Kevin Warsh

The dismissal of the probe removes the primary obstacle for Kevin Warsh, President Trump’s nominee to succeed Powell. Senator Thom Tillis (R-NC) had previously vowed to block any nominee until the investigation into Powell was resolved. With the probe now closed, the White House expressed renewed confidence that the Senate will move swiftly to confirm Warsh. During his testimony before the Senate Banking Committee, Warsh pledged to maintain the "strict independence" of the Federal Reserve’s monetary policy, a critical concern for lawmakers following months of executive-branch criticism of the central bank.

The Role of the Inspector General

The investigation has been transitioned to Michael Horowitz, the Fed's Inspector General, who will conduct an independent analysis of the renovation project’s "substantial cost increases." The Fed is currently self-funded, but the project’s budget has ballooned from an initial $1.9 billion to nearly $2.5 billion. The Federal Reserve has attributed these increases to unforeseen site conditions, such as soil contamination and asbestos, as well as rising labor and material costs. Pirro noted that while the criminal file is closed for now, she would not hesitate to reopen it if the IG’s "comprehensive report" uncovers evidence of criminal misconduct.