DOJ Ends Criminal Probe into Fed Chair Jerome Powell, Clearing Path for Confirmation

The Department of Justice (DOJ) announced on Friday that it will drop a criminal probe into Federal Reserve Chair Jerome Powell. The decision marks a significant shift in an unprecedented investigation into the nation’s top central banker.

This move clears the way for President Trump’s nominee to lead the Federal Reserve to be confirmed after a prolonged standoff with Sen. Thom Tillis (R-N.C.). Tillis had blocked the confirmation process until the investigation was resolved.

Key Statements:

"I have directed my office to close our investigation as the IG undertakes this inquiry," wrote Jeanine Pirro, the U.S. Attorney for the District of Columbia, on X (formerly Twitter).

"This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers. The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas."

Pirro emphasized that the Inspector General’s review will focus on the multibillion-dollar cost overruns associated with the Federal Reserve’s building renovations, which have been funded by taxpayers.

Background:

In January, Powell disclosed that he had received subpoenas seeking records related to the central bank’s multibillion-dollar building renovations. The government’s investigation examined whether Powell had committed fraud or misled Congress regarding these renovations.