Jeanine Pirro drops criminal probe of Jerome Powell
Closure of the DOJ Criminal Probe
The Department of Justice has concluded its criminal investigation into Federal Reserve Chair Jerome Powell, ending a contentious process that raised concerns about the central bank’s autonomy. Jeanine Pirro, the U.S. Attorney for the District of Columbia, announced the probe’s termination on X, stating her office would now assess findings from the Fed’s inspector general. This shift removes a major obstacle for Kevin Warsh, Trump’s nominee to replace Powell, as his Senate confirmation moves forward.
Powell’s term at the Fed expires on May 15, and Warsh faced scrutiny from key senators during a recent hearing. One senator had withheld support for his nomination until the DOJ investigation concluded. The probe, initiated in January, targeted Powell over perceived mismanagement of the Washington headquarters renovation, which cost billions. Trump had criticized Powell for not cutting interest rates swiftly, framing the inquiry as a political effort to undermine the Fed’s independence.
“I can’t imagine that ‘Too Late’ is taking money on construction. I can’t. But it’s possible,” Trump remarked, using his nickname for Powell.
The investigation, which Powell dismissed as politicized, faced early setbacks. A federal judge last month invalidated the DOJ’s subpoenas, a move Pirro intended to challenge. Meanwhile, the Fed’s inspector general has been examining the renovation’s cost overruns since July 2025. Pirro’s office will review the report before deciding if further action is needed.
Trump’s campaign to remove Powell intensified with threats to fire him if he refused to step down. However, halting the probe marks a strategic pivot for the administration, which previously emphasized the investigation’s importance. White House press secretary Karoline Leavitt confirmed the DOJ’s focus has shifted to the inspector general, noting the probe remains active under a different authority.
Political Implications and Senate Dynamics
Republican Senator Thom Tillis, a voting member of the committee, had stalled Warsh’s confirmation due to the ongoing inquiry. He described the probe as “frivolous” and pledged to support the nomination once it concluded. Democratic Senator Elizabeth Warren criticized the probe as a baseless attempt to politicize the Fed’s operations.
The probe’s end alleviates uncertainty for the central bank’s leadership transition. Powell had warned that without a replacement by May 15, he would serve temporarily. Trump, however, remains focused on replacing him, joking about suing Warsh if the new chair failed to lower rates. The resolution of the DOJ’s case now allows the Senate to proceed with its final decision on Warsh’s appointment.
