Justice Department Formally Closes Powell Criminal Probe, Easing Path For Warsh Fed Nomination
U.S. Attorney Jeanine Pirro on Friday directed her office to close the Justice Department's criminal probe into Federal Reserve Chair Jerome Powell, a move that lawmakers say clears the final roadblock to Kevin Warsh's Senate confirmation. (cbsnews.com)
Pirro said the Fed inspector general will take up an examination of the Fed headquarters renovation while prosecutors stand down. The inspector general has already reviewed the project and previously found no evidence of wrongdoing, NPR reported. (npr.org)
The episode traces back to a yearslong Fed headquarters overhaul whose price tag swelled to about $2.5 billion, roughly $600 million above early estimates. Powell testified about the project to the Senate Banking Committee in June 2025, and partisan attacks escalated after President Donald Trump accused him of wrongdoing. After Trump nominated Warsh, prosecutors opened a criminal inquiry in January 2026 and issued subpoenas to the Fed.
Initial coverage framed the probe as political leverage, noting Sen. Thom Tillis's threat to block Warsh until DOJ acted. Outlets such as MS NOW emphasized that connection, while later reporting underscored that the inspector general had already examined the renovation and found no wrongdoing.
The White House urged senators to move quickly on Warsh, and social media split between calls that the closure was politically timed and views that it restores normalcy to Fed oversight. White House reaction footage shows officials pushing for a swift confirmation, even as Pirro said prosecutors could reopen the case if new evidence emerges.
Show source details & analysis (8 sources)
📊 Relevant Data
The Federal Reserve's headquarters renovation project has a total estimated cost of $2.5 billion, representing an overrun of approximately $600 million from the original $1.9 billion estimate. ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540)) ([NBC News](https://www.nbcnews.com/business/economy/25-billion-renovation-center-dojs-criminal-investigation-federal-reser-rcna253540))
The $2.5 billion renovation at the center of the DOJ's criminal investigation of the Federal Reserve — NBC News
In his June 2025 Senate testimony, Jerome Powell stated that the Federal Reserve's Eccles Building had 'never had' a serious renovation, despite a major renovation project that occurred from 1999 to 2004. ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html)) ([Yahoo Finance](https://finance.yahoo.com/news/jerome-powell-hit-criminal-referral-143600882.html))
Jerome Powell hit with a criminal referral over Fed's $2.5B 'Palace of Versailles' renovation — Yahoo Finance
The ongoing Department of Justice criminal probe into Federal Reserve Governor Lisa Cook involves allegations of mortgage fraud, stemming from a criminal referral by the Federal Housing Finance Agency. ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says)) ([PBS NewsHour](https://www.pbs.org/newshour/politics/doj-probing-mortgage-fraud-claims-against-fed-governor-lisa-cook-ap-source-says))
DOJ probing mortgage fraud claims against Fed governor Lisa Cook, AP source says — PBS NewsHour
📌 Key Facts
- U.S. Attorney Jeanine Pirro announced on X that she has directed her office to close the Justice Department’s criminal probe of Federal Reserve Chair Jerome Powell while the Fed inspector general continues a separate review (U.S. Attorney Jeanine Pirro).
- The Federal Reserve’s inspector general says it has been evaluating the Fed headquarters renovation since July, has reviewed the project twice (finding no wrongdoing), and will publicly report its findings to Congress (Federal Reserve’s inspector general).
- The DOJ’s probe focused on alleged false statements to Congress by Powell about cost overruns tied to the Federal Reserve headquarters renovation (Federal Reserve headquarters renovation).
- Sen. Thom Tillis had vowed to block Kevin Warsh’s Fed nomination while the Powell investigation was active, and the White House (through Press Secretary Karoline Leavitt) has publicly urged him to move quickly now that the probe is closed (Sen. Thom Tillis).
- Judge James Boasberg quashed subpoenas tied to Powell’s June 2025 Senate testimony — a ruling characterized as preventing subpoenas used to pressure Powell to cut rates or resign — and the DOJ’s effort to revisit that ruling was denied earlier this month (Judge James Boasberg).
- CBS News reports that prosecutors from Pirro’s office made an unannounced attempt to enter the Fed’s renovation site and were denied access, and that the subpoenas had threatened an indictment tied to Powell’s testimony (CBS News).
- Pirro publicly vowed earlier in the week to continue and appeal the investigation but reversed course within days, closing the case while explicitly reserving the right to reopen or pursue a criminal prosecution in the future (Pirro).
📊 Analysis & Commentary (1)
"The WSJ editorial argues that the Justice Department’s closure of the criminal probe into Jerome Powell was a welcome end to a politically motivated roadblock, clearing the way for Kevin Warsh’s confirmation and deserving of support. ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f)) ([The Wall Street Journal](https://www.wsj.com/opinion/jerome-powell-investigation-justice-department-federal-reserve-kevin-warsh-donald-trump-5c988c6f))"
📰 Source Timeline (8)
Follow how coverage of this story developed over time
- CBS video piece reiterates that U.S. Attorney Jeanine Pirro announced the end of the criminal probe into Jerome Powell.
- Confirms the probe was tied to the Federal Reserve's headquarters renovation project.
- PBS segment confirms the DOJ is dropping its criminal probe into Jerome Powell over whether he lied to Congress about Fed headquarters renovations.
- U.S. Attorney for D.C. Jeanine Pirro says the Fed inspector general will instead examine renovation cost overruns.
- White House Press Secretary Karoline Leavitt publicly urges Sen. Thom Tillis to move forward quickly on Kevin Warsh’s confirmation after he threatened to block it unless DOJ dropped the investigation.
- Segment reiterates that the probe focused specifically on alleged false statements to Congress about renovation costs.
- The White House has publicly reacted to the Justice Department's decision to drop the investigation into Jerome Powell.
- CBS segment indicates the administration is now framing the closure of the probe in political and policy terms, beyond the DOJ legal explanation.
- Column recounts that as recently as Tuesday of the same week, Trump went on CNBC and effectively admitted he was helping steer the Powell case and made new, evidence-free allegations against Powell.
- Notes that on Wednesday, U.S. Attorney Jeanine Pirro publicly vowed to continue the case against Powell before reversing course and closing it on Friday morning.
- Reinforces that Pirro explicitly left the door open to potentially pursuing Powell again in the future, even as she closed the current investigation.
- Confirms that U.S. Attorney Jeanine Pirro explicitly directed her office on X to close the Powell investigation while the Fed inspector general continues a cost‑overrun review.
- Notes that the Fed inspector general’s office says it has been evaluating the renovation since July and will release its findings publicly to Congress.
- Reports that Pirro’s decision came just days after prosecutors from her office made an unannounced attempt to enter the Fed’s renovation site and were denied access.
- Recaps that the subpoenas threatening an indictment were tied to Powell’s June 2025 Senate Banking testimony about the renovation project.
- Details that Judge James Boasberg quashed the subpoenas as a pretext to pressure Powell to cut rates or resign, and that DOJ’s bid to revisit that ruling was denied earlier this month.
- Highlights Pirro’s public shift from vowing to appeal and continue the investigation to now closing it, while reserving the right to restart a criminal case.
- Includes a White House quote from spokesman Kush Desai framing the inspector general’s “more powerful authorities” as best suited to probe the Fed’s renovation costs.
- NPR confirms the U.S. Attorney for D.C. Jeanine Pirro announced on X that she has directed her office to close the Powell investigation as the Fed Inspector General undertakes a review.
- NPR notes explicitly that the Fed's inspector general has already reviewed the headquarters renovation project twice and found no wrongdoing.
- NPR reiterates that Sen. Thom Tillis, R-N.C., had threatened to block Kevin Warsh's nomination unless DOJ dropped the investigation, and characterizes the closure as paving the way for Warsh’s confirmation.
- 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.