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The U.S. Department of Justice has ended its criminal investigation into Federal Reserve Chair Jerome Powell. The decision removes a key legal concern tied to the Federal Reserve headquarters renovation project in Washington.
Attention has now shifted toward the Senate confirmation process of Kevin Warsh as the next Federal Reserve chair. The case has also drawn interest due to its connection with central bank leadership and monetary policy direction.
The Department of Justice closed the criminal probe linked to Jerome Powell over renovation cost concerns at the Federal Reserve headquarters. The inquiry focused on statements related to a project whose cost increased from an initial estimate of about 1.9 billion dollars to around 2.5 billion dollars. Officials reviewed whether public statements made during Senate testimony contained misleading information.
A federal court earlier blocked subpoena actions tied to the investigation. The court record stated that prosecutors had not presented evidence of criminal conduct. One judicial comment noted “essentially zero evidence” of wrongdoing, according to court proceedings.
U.S. Attorney Jeanine Pirro stated, “I have directed my office to close our investigation as the Inspector General continues review,” while also saying the office could reopen the case if new facts emerge.
With the DOJ investigation closed, the Senate has moved attention back to Kevin Warsh’s nomination as Federal Reserve chair. Warsh appeared before the Senate Banking Committee and addressed concerns about independence from the White House. He stated, “The president never once asked me to commit to any particular interest rate decision,” according to testimony records.
Some lawmakers had previously delayed progress on the nomination due to the ongoing investigation into Powell. Senator Thom Tillis had said he would not support advancement of the nomination while the probe remained open. Following the closure of the case, committee discussions have resumed, with expectations of a vote before Powell’s term ends on May 15.
Although the criminal probe has ended, the Federal Reserve renovation project remains under review by the institution’s inspector general. The review focuses on construction costs, design changes, and site conditions such as asbestos findings. The inspector general has continued to collect information and prepare a report for public and congressional review.
The White House has stated that oversight will continue through internal channels. A spokesperson said the matter has moved under “different authority,” referring to the inspector general’s role.
Meanwhile, Powell’s position on the Federal Reserve Board remains active until 2028, even as his term as chair approaches its scheduled end. Senate review of leadership changes is expected to continue alongside discussions on the direction of monetary policy.
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