DOJ Trump administration 2026 Thom Tillis Federal Reserve Kevin Warsh Karoline Leavitt Jerome Powell Fed investigation Banking Committee

White House Press Secretary Karoline Leavitt contradicted the Department of Justice’s announcement that the investigation into Federal Reserve Chair Jerome Powell had been dropped.

Just hours after the DOJ announced on Friday that the probe into Powell’s renovation of the Federal Reserve’s Washington headquarters was closed, Leavitt told reporters the case was still active—but under new authority.

“The case is not necessarily dropped, it’s just being moved over to the inspector general who has critical tools at their disposal to continue to look into the financial mismanagement at the Fed,” Leavitt stated.

“This has been a priority for the president. The investigation still continues.” — Karoline Leavitt, White House Press Secretary

Senator Thom Tillis, a Republican member of the Banking, Housing, and Urban Affairs Committee, has vowed to block Trump’s nominee to chair the Federal Reserve, Kevin Warsh, unless the Powell investigation is fully dropped. Committee Democrats are also united in opposing Warsh, meaning Tillis’s single vote could determine the outcome.

Tillis has repeatedly denied that Trump was behind the investigation, suggesting instead that it was initiated by “somebody in the DOJ” seeking favor with the White House, according to NBC News.

Leavitt, however, made no such distinction, directly tying the probe to the president’s priorities.

“This has obviously been a priority for the president,” she said. “So the investigation still continues, it’s just under a different authority.”

Source: The New Republic
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