Justice Department Formally Closes Powell Criminal Probe, Easing Path For Warsh Fed Nomination
The Justice Department this week in Washington formally closed its criminal investigation into Federal Reserve Chair Jerome Powell, removing a major obstacle to President Trump's nominee Kevin Warsh's Senate confirmation.
U.S. Attorney Jeanine Pirro publicly directed her office to end the probe while the Federal Reserve inspector general continues an inquiry into renovation costs. The inspector general had already been assigned to evaluate the project before Pirro's announcement. A White House spokesman, Kush Desai, said the inspector general has "more powerful authorities" to examine the renovation. Senator Thom Tillis had vowed to block Warsh's confirmation while the probe was active, and its closure removes that stated barrier. Senator Elizabeth Warren criticized the move as an attempt to clear the path for Warsh and pointed to a separate DOJ criminal inquiry into Governor Lisa Cook.
The episode traces back to a multi-year overhaul of the Fed's historic Washington buildings that ballooned to about $2.5 billion and is scheduled to finish in 2027. Rising costs led to a canceled New York renovation in 2024 and prompted Powell to testify before the Senate Banking Committee in June 2025. President Trump began accusing Powell of fraud in July 2025, and after Trump's January 2026 nomination of Kevin Warsh the Justice Department opened a criminal probe and issued subpoenas to the Fed. Federal Judge James Boasberg blocked those subpoenas in March 2026, saying there was essentially no evidence of a crime, which helped stall Warsh's confirmation.
Early coverage treated the investigation as a politically charged DOJ action tied to the White House's feud with Powell. Recent reporting has emphasized the March court ruling, the inspector general's role, and Pirro's public directive to close the criminal case. Public reaction is split: some call the closure evidence of a two-tiered justice system, while others say the criminal probe should never have been opened. Warsh, who served on the Federal Reserve Board from 2006 to 2011, now faces a clearer path to confirmation, though Senate approval is not guaranteed.
📊 Relevant Data
The Federal Reserve's headquarters renovation project, which involves overhauling two historic buildings and adding new structures, has an estimated total cost of $2.5 billion and is scheduled for completion in 2027.
The $2.5 billion renovation at the center of the DOJ's criminal investigation of the Federal Reserve — NBC News
The Justice Department's probe into Jerome Powell was initiated based on allegations that he provided misleading testimony to Congress regarding the costs and status of the Federal Reserve's headquarters renovation project.
What to Know About the Criminal Investigation of Fed Chair Jerome Powell — The New York Times
Kevin Warsh, nominated to replace Jerome Powell as Federal Reserve Chair, previously served as a member of the Federal Reserve Board of Governors from 2006 to 2011.
Kevin Warsh — Wikipedia
Senator Thom Tillis stated he would oppose the confirmation of any Federal Reserve nominee, including Kevin Warsh, until the Justice Department's probe into Jerome Powell is resolved.
Tillis Statement on the Nomination of Kevin Warsh for Federal Reserve Chairman — Office of Senator Thom Tillis
📌 Key Facts
- The Justice Department formally closed the criminal investigation into Federal Reserve Chair Jerome Powell after U.S. Attorney Jeanine Pirro publicly directed her office to end the probe and say the Fed inspector general would conduct an inquiry into renovation costs.
- The Fed inspector general had already been tasked with evaluating the renovation project before Pirro's request, despite Pirro implying the request was made that morning.
- White House spokesperson Kush Desai said the inspector general has “more powerful authorities” to examine the renovation, framing the handoff as appropriate.
- Sen. Thom Tillis had vowed to block Kevin Warsh’s confirmation while the Powell probe continued; the probe’s closure removes that stated obstacle to Warsh’s nomination.
- Sen. Elizabeth Warren criticized the move as an effort to clear the path for Warsh and noted that the Justice Department still has an active criminal probe of Fed Governor Lisa Cook.
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- Identifies U.S. Attorney Jeanine Pirro’s public statement explicitly directing her office to close the Powell investigation as the Fed inspector general conducts an inquiry into renovation costs.
- Clarifies that the Fed inspector general was already tasked with evaluating the renovation project before Pirro’s request, despite her implication it was requested that morning.
- Adds a White House statement from spokesperson Kush Desai framing the inspector general as having “more powerful authorities” to examine the renovation.
- Details Sen. Thom Tillis’s vow to block Kevin Warsh’s confirmation as long as the Powell probe continued and notes that closure removes that obstacle.
- Includes Sen. Elizabeth Warren’s on‑the‑record criticism calling the move an attempt to clear the path for Warsh and highlighting DOJ’s continuing criminal probe of Governor Lisa Cook.