The Justice Department on Friday dropped a criminal investigation into the Federal Reserve and its leader, Chairman Jerome Powell, over a renovation project at the central bank’s Washington headquarters.
Subscribe to read this story without ads
Get unlimited access to ad-free articles and exclusive content.
“This morning, the Federal Reserve’s Inspector General was asked to scrutinize billions of dollars in construction cost overruns borne by taxpayers,” D.C. U.S. Attorney Jeanine Pirro said in a post on X.
“Accordingly, I have directed my office to close the investigation as the IG conducts this investigation.”
“If the facts warrant it, we will not hesitate to reopen the criminal investigation,” Pirro added.
The Federal Reserve’s Inspector General has already reviewed the project twice and found no wrongdoing. Under relentless pressure from President Donald Trump and his key allies, Chairman Powell again called for a review of the plan in 2025.
The decision clears the way for Trump’s nominee for Fed chairman, Kevin Warsh, to move forward for a Senate confirmation vote.
Since President Trump nominated Warsh for the role, Warsh’s confirmation has been blocked by Sen. Thom Tillis, R-N.C., due to what Tillis called a “sham” investigation into Powell.
Tillis and many other lawmakers said it doesn’t appear Powell committed any crime.
The Fed declined to comment on Pirro’s announcement.
