Fed Chair Jerome Powell criminal investigation dropped by DOJ

U.S. Attorney Jeanine Pirro announced the Department of Justice is closing its criminal investigation into Federal Reserve chair Jerome Powell, referring the matter to the Federal Reserve's Inspector General.

Objective Facts

U.S. Attorney Jeanine Pirro on Friday announced that the DOJ is closing its criminal investigation into Federal Reserve chair Jerome Powell, which focused on whether Powell made false statements to Congress about cost overruns in the Federal Reserve's ongoing headquarters renovation. Chief Judge James Boasberg quashed the DOJ's subpoenas in March, ruling that the government has offered no evidence whatsoever that Powell committed any crime other than displeasing the president, and denied the government's motion for reconsideration in April. The move by U.S. Attorney Jeanine Pirro removes a major hurdle to President Donald Trump's nomination of Kevin Warsh to replace Powell. Sen. Thom Tillis, a North Carolina Republican, had put an effective hold on the Senate confirming Warsh unless the criminal investigation of Powell was dropped. Sen. Elizabeth Warren of Massachusetts, the top-ranking Democrat on the Banking Committee, said the abandonment of the Powell investigation 'is just an attempt to clear the path for Senate Republicans to install President Trump's sock puppet Kevin Warsh as Fed Chair' and that the DOJ 'threatened to restart the bogus criminal investigation into Fed Chair Powell at any time while failing to drop their ridiculous criminal probe against Governor Lisa Cook.'

Left-Leaning Perspective

Sen. Elizabeth Warren warned in response that the threat to the central bank's independence is far from over, and shortly after U.S. Attorney Jeanine Pirro announced that her office was abandoning its months-long investigation of Powell, Warren released a statement cautioning that the end of the widely condemned probe did not mean an end to President Donald Trump's efforts to take over the Federal Reserve. Warren stated the abandonment 'is just an attempt to clear the path for Senate Republicans to install President Trump's sock puppet Kevin Warsh as Fed Chair,' that the DOJ 'threatened to restart the bogus criminal investigation into Fed Chair Powell at any time while failing to drop their ridiculous criminal probe against Governor Lisa Cook,' and asserted 'Anyone who believes Donald Trump's corrupt scheme to take over the Fed is over is fooling themselves' and 'The Senate should not proceed with the nomination of Kevin Warsh.' In a letter to Pirro, Senators Elizabeth Warren and Dick Durbin wrote that the announcement 'leaves the door wide open for you to relaunch the criminal probe against Chair Powell — or future baseless investigations into Powell or other Fed Governors and a future Fed Chair — should it once again become politically expedient for you to do so.' Warren also noted that this week Warsh avoided questions in a congressional hearing about his financial ties to Jeffrey Epstein and whether Trump spoke to him about lowering interest rates. Warren responded to White House Press Secretary Karoline Leavitt's claim that the investigation 'still continues' by writing 'Trump's spokeswoman says the witch hunt against Jerome Powell 'still continues,' No Republican claiming to care about Fed independence should move Warsh's nomination forward.'

Right-Leaning Perspective

Sen. Thom Tillis, who had been highly critical of the Powell investigation, said Sunday that he had had 'a number of discussions' with Justice Department officials who 'have made it very clear that the current investigation is completely and fully ended,' and he told reporters 'Let's get Chair Powell comfortable with actually exiting at some point, not to 2028, and do that by eliminating a bogus investigation that started this whole drama.' Tillis framed the issue not as a personal grudge but as a matter of institutional principle, arguing that an open DOJ investigation into a sitting Fed chair could look like political leverage over monetary policy. Sen. Thom Tillis stated he is willing to vote to confirm Kevin Warsh, saying 'I have been clear from the start: the U.S. Attorney's Office criminal investigation into Chair Powell was a serious threat to the Fed's independence, and it needed to end before I could support Kevin Warsh's confirmation. I welcome the Inspector General's investigation. This is a necessary and appropriate measure, and I have confidence it will be conducted thoroughly and professionally,' and noted he is looking 'forward to supporting Kevin Warsh's confirmation,' describing Warsh as 'an outstanding nominee.' South Carolina Republican Sen. Tim Scott welcomed the decision, stating 'These serious concerns warrant scrutiny, and I'm pleased this matter is continuing to receive it' and 'I welcome the Inspector General's review and expect a full accounting of how these costs spiraled out of control.' White House spokesman Kush Desai said that taxpayers deserve answers about the Fed's 'fiscal mismanagement' and that the inspector general is in the 'best position it to get to the bottom of the matter,' adding 'The White House remains as confident as before that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman to finally restore competence and confidence in Fed decision-making.'

Deep Dive

The Department of Justice launched a criminal investigation into the Fed chair in January after Trump spent months railing against Powell for not lowering interest rates faster, with Trump's complaints including accusations of impropriety and incompetence in Powell's leadership of the renovation. The DOJ criminal probe focused on whether Powell made false statements to Congress about cost overruns in the Federal Reserve's ongoing headquarters renovation during a Senate Banking Committee panel last June. Chief Judge James Boasberg of the US District Court for the District of Columbia quashed the DOJ's subpoenas in March, ruling that 'the government has offered no evidence whatsoever that Powell committed any crime other than displeasing the president.' What each side gets right and what they leave out: The left correctly identifies that the investigation was initiated at a moment when Trump was publicly attacking Powell and coincided with efforts to remove him from office, and the federal judge's findings support the view that the investigation lacked evidentiary foundation. Judge Boasberg concluded that the subpoenas were issued for 'the improper purpose of harassing and pressuring Powell to push the Fed to lower interest rates or to resign,' that the Justice Department put forward 'only a tenuous assertion of a legitimate purpose,' and sarcastically wrote 'The Government might as well investigate him for mail fraud because someone once saw him send a letter.' However, the left downplays that the Fed's Inspector General previously audited the renovation project in 2021 and noted areas of recommended improvement but did not find evidence of fraud or criminal conduct, suggesting legitimate questions about cost overruns exist even if criminal charges are unwarranted. The right correctly emphasizes that the investigation posed a genuine threat to Fed independence through the appearance of political pressure, and that multiple Republicans, including Trump-appointees, recognized this institutional danger. However, the right obscures the fact that the investigation was initiated based on Trump's demand and continued despite judicial rejection, and that White House Press Secretary Karoline Leavitt cast doubt on the closure by describing the probe as 'not necessarily dropped' but 'just being moved over to the inspector general' and stating 'the investigation still continues.' The move to abandon the criminal probe comes after weeks of private pleas from Senate Republicans that grew increasingly public, with the probe imperiling both Warsh's nomination and Powell's tenure at the Fed. Tillis' announcement likely clears the way for a speedy confirmation of Kevin Warsh, a former Fed governor, to lead the central bank by the time Powell's term ends on May 15. What remains unresolved is whether Powell will remain on the Fed's Board of Governors after his term as chair expires, a decision that could significantly affect Trump's ability to reshape the Fed's composition and monetary policy direction.

OBJ SPEAKING

Create StoryTimelinesVoter ToolsRegional AnalysisAll StoriesCommunity PicksUSWorldPoliticsBusinessHealthEntertainmentTechnologyAbout

Fed Chair Jerome Powell criminal investigation dropped by DOJ

U.S. Attorney Jeanine Pirro announced the Department of Justice is closing its criminal investigation into Federal Reserve chair Jerome Powell, referring the matter to the Federal Reserve's Inspector General.

Apr 25, 2026· Updated Apr 28, 2026
What's Going On

U.S. Attorney Jeanine Pirro on Friday announced that the DOJ is closing its criminal investigation into Federal Reserve chair Jerome Powell, which focused on whether Powell made false statements to Congress about cost overruns in the Federal Reserve's ongoing headquarters renovation. Chief Judge James Boasberg quashed the DOJ's subpoenas in March, ruling that the government has offered no evidence whatsoever that Powell committed any crime other than displeasing the president, and denied the government's motion for reconsideration in April. The move by U.S. Attorney Jeanine Pirro removes a major hurdle to President Donald Trump's nomination of Kevin Warsh to replace Powell. Sen. Thom Tillis, a North Carolina Republican, had put an effective hold on the Senate confirming Warsh unless the criminal investigation of Powell was dropped. Sen. Elizabeth Warren of Massachusetts, the top-ranking Democrat on the Banking Committee, said the abandonment of the Powell investigation 'is just an attempt to clear the path for Senate Republicans to install President Trump's sock puppet Kevin Warsh as Fed Chair' and that the DOJ 'threatened to restart the bogus criminal investigation into Fed Chair Powell at any time while failing to drop their ridiculous criminal probe against Governor Lisa Cook.'

Left says: Sen. Elizabeth Warren stated 'Anyone who believes Donald Trump's corrupt scheme to take over the Fed is over is fooling themselves' and 'The Senate should not proceed with the nomination of Kevin Warsh.'
Right says: Sen. Thom Tillis framed the issue not as a personal grudge but as a matter of institutional principle, arguing that an open DOJ investigation into a sitting Fed chair could look like political leverage over monetary policy.
✓ Common Ground
Several lawmakers across the aisle, particularly Sen. Thom Tillis, share concern that the criminal investigation into Powell represented an improper use of prosecutorial power that could undermine Fed independence, with Tillis framing the investigation as a threat to institutional integrity rather than a legitimate legal matter.
Tillis and numerous other lawmakers have said it did not appear Powell committed any crime.
There appears to be shared understanding that the criminal investigation, though ended, does not necessarily resolve underlying questions about the renovation cost overruns, with the move to transfer the matter to the inspector general allowing scrutiny to continue in a different forum.
Objective Deep Dive

The Department of Justice launched a criminal investigation into the Fed chair in January after Trump spent months railing against Powell for not lowering interest rates faster, with Trump's complaints including accusations of impropriety and incompetence in Powell's leadership of the renovation. The DOJ criminal probe focused on whether Powell made false statements to Congress about cost overruns in the Federal Reserve's ongoing headquarters renovation during a Senate Banking Committee panel last June. Chief Judge James Boasberg of the US District Court for the District of Columbia quashed the DOJ's subpoenas in March, ruling that 'the government has offered no evidence whatsoever that Powell committed any crime other than displeasing the president.'

What each side gets right and what they leave out: The left correctly identifies that the investigation was initiated at a moment when Trump was publicly attacking Powell and coincided with efforts to remove him from office, and the federal judge's findings support the view that the investigation lacked evidentiary foundation. Judge Boasberg concluded that the subpoenas were issued for 'the improper purpose of harassing and pressuring Powell to push the Fed to lower interest rates or to resign,' that the Justice Department put forward 'only a tenuous assertion of a legitimate purpose,' and sarcastically wrote 'The Government might as well investigate him for mail fraud because someone once saw him send a letter.' However, the left downplays that the Fed's Inspector General previously audited the renovation project in 2021 and noted areas of recommended improvement but did not find evidence of fraud or criminal conduct, suggesting legitimate questions about cost overruns exist even if criminal charges are unwarranted. The right correctly emphasizes that the investigation posed a genuine threat to Fed independence through the appearance of political pressure, and that multiple Republicans, including Trump-appointees, recognized this institutional danger. However, the right obscures the fact that the investigation was initiated based on Trump's demand and continued despite judicial rejection, and that White House Press Secretary Karoline Leavitt cast doubt on the closure by describing the probe as 'not necessarily dropped' but 'just being moved over to the inspector general' and stating 'the investigation still continues.'

The move to abandon the criminal probe comes after weeks of private pleas from Senate Republicans that grew increasingly public, with the probe imperiling both Warsh's nomination and Powell's tenure at the Fed. Tillis' announcement likely clears the way for a speedy confirmation of Kevin Warsh, a former Fed governor, to lead the central bank by the time Powell's term ends on May 15. What remains unresolved is whether Powell will remain on the Fed's Board of Governors after his term as chair expires, a decision that could significantly affect Trump's ability to reshape the Fed's composition and monetary policy direction.

◈ Tone Comparison

Democrats' language—calling the move an attempt to install a 'sock puppet,' describing investigations as 'bogus' and 'ridiculous'—conveys a view of the process as a coordinated political scheme motivated by partisan goals. Republicans' language emphasizes institutional concerns and nominee credentials, with Tillis describing the investigation as a 'threat to Fed independence' and Warsh's credentials as 'impeccable,' framing the issue as one of principle rather than politics.