The Justice Department has closed its criminal investigation into Federal Reserve Chair Jerome Powell, removing a significant obstacle to the confirmation of Kevin Warsh as Powell’s successor. The decision, announced by U.S. Attorney Jeanine Pirro, ends a probe into alleged cost overruns related to the renovation of the Federal Reserve Board Building in Washington, D.C. Pirro stated that instead of pursuing criminal charges, the matter would be referred to the Fed’s inspector general for an internal review.
The investigation had been initiated following criticism from President Donald Trump, who repeatedly questioned the expense of the Fed’s building upgrades and had previously floated the idea of removing Powell from office—a move some legal experts said could be unlawful. Trump’s nominee to replace Powell, Kevin Warsh, faced resistance in the Senate, particularly from Senator Thom Tillis of North Carolina, who conditioned his support on the termination of the Justice Department’s inquiry into Powell.
With the criminal probe now concluded, the path appears clearer for Warsh’s confirmation. The White House expressed confidence that the Senate would act swiftly to approve Warsh, framing the move as necessary to restore competence and confidence in Federal Reserve decision-making. Pirro emphasized that she would not hesitate to reopen the criminal investigation should new evidence emerge, but for now, the inspector general’s office is leading the review and plans to make its findings public upon completion.
The Federal Reserve declined to comment on the Justice Department’s decision. The inspector general’s office confirmed It’s actively working to complete its assessment of the building renovation costs and will release results to Congress and the public when ready. No timeline for the conclusion of that review has been provided.
The developments reach amid broader scrutiny of the Federal Reserve’s independence, particularly as Powell’s term nears its end and the administration seeks to reshape central bank leadership. While the criminal investigation has ended, questions remain about the appropriate oversight of federal agency expenditures and the balance between executive influence and institutional autonomy.
As of April 25, 2026, the Senate Banking, Housing and Urban Affairs Committee has not yet scheduled a confirmation vote for Kevin Warsh. The next official checkpoint will be the committee’s consideration of his nomination, pending any further developments from the inspector general’s ongoing review.
Readers are encouraged to follow official updates from the Senate Banking Committee and the Federal Reserve Inspector General’s Office for the latest information on this developing story. Share your thoughts in the comments below and help spread informed discussion by sharing this article.