DOJ Halts Criminal Probe of Federal Reserve Renovation Costs, Clears Powell

The Justice Department has officially closed its criminal investigation into Jerome Powell, chairman of the Federal Reserve, and the central bank regarding costly renovations at their Washington headquarters. U.S. Attorney Jeanine Pirro announced that while no charges will be filed, the Inspector General will continue to review the project’s significant cost overruns, which could reach billions of dollars.

Pirro emphasized that the investigation remains open for potential reopening if new evidence emerges. This decision clears the way for President Trump’s nominee, Kevin Warsh, to proceed with his Senate confirmation vote as a Federal Reserve governor. Warsh’s confirmation had been delayed by Senator Thom Tillis, who previously criticized the investigation as “bogus.”

The Inspector General’s prior reviews of the renovation project found no wrongdoing, which contributed to the Justice Department’s decision to halt its criminal probe. The Federal Reserve has not issued any public comment on the matter. This development underscores ongoing tensions between federal oversight and executive branch priorities, particularly in high-profile cases involving major institutions like the Federal Reserve.