DOJ ends Powell probe

The Justice Department ended its criminal probe of Federal Reserve Chair Jerome Powell on April 24 and shifted the renovation dispute back to the Fed’s inspector general. (cbsnews.com) (pbs.org) U.S. Attorney for the District of Columbia Jeanine Pirro said her office was closing the case while the inspector general scrutinizes cost overruns tied to the central bank’s Washington headquarters project. She said she could reopen a criminal case later if new facts warrant it. (cbsnews.com) (nbcnews.com) The investigation had stalled in court. In March, a prosecutor acknowledged the government had not found evidence of a crime, and Judge James Boasberg later quashed subpoenas to the Federal Reserve, calling the showing effectively empty. (pbs.org) The project at the center of the fight is the Fed’s multibillion-dollar headquarters renovation in Washington. Pirro said the inspector general was being asked to examine overruns “in the billions of dollars,” while the watchdog’s office said it has been reviewing the project since July 2025. (nbcnews.com) (cnbc.com) The immediate political effect is in the Senate, not at the Fed’s next rate decision. Republican Sen. Thom Tillis had said he would not support any nominee to lead the central bank until the Powell investigation was dropped. (cnbc.com) (cbsnews.com) That position had effectively slowed Kevin Warsh, President Donald Trump’s nominee to replace Powell. Powell’s term as chair ends on May 15, and Warsh told senators this week he would act independently on interest rates if confirmed. (pbs.org) (cbsnews.com) The White House welcomed the shift but did not frame it as the end of all scrutiny. Press Secretary Karoline Leavitt said the matter was “just being moved over to the inspector general,” while a White House spokesman said taxpayers still deserve answers on the project. (nbcnews.com) (cbsnews.com) Powell and his allies had argued the criminal case was part of a broader campaign to pressure the central bank as Trump pushed for lower interest rates. With the criminal probe now closed, the legal threat has eased, but the renovation review and the succession fight are still moving. (cnbc.com) (pbs.org)