DOJ Ends Probe into Powell Before Warsh Confirmation Hearing
The U.S. Justice Department has ended its criminal investigation into Federal Reserve Chair Jerome Powell over alleged cost overruns in building renovations. The move follows President Donald Trump's nomination of Kevin Warsh to replace Powell, whose term expires on May 15, 2026. Warsh appeared before the Senate Banking Committee for a confirmation hearing on Tuesday.
upi.comU.S. Justice Department dropped its criminal investigation into Federal Reserve Chair Jerome Powell over alleged building cost overruns, clearing a potential obstacle for the confirmation of President Donald Trump's nominee to replace him. U.S.
Post by @Forbes on X
Attorney Jeanine Pirro stated that an internal investigation led by the central bank's inspector general would proceed instead. The decision came as Kevin Warsh, Trump's pick for Federal Reserve chair and a former Fed governor, faced the Senate Banking Committee at a confirmation hearing on Tuesday morning.
White House spokesman Kush Desai stated that American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement, and the Office of the Inspector General's more powerful authorities best position it to get to the bottom of the matter.
The White House remains confident that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman. Pirro stated on X that she would not hesitate to restart a criminal investigation should the facts warrant doing so. The inspector general's office stated it is actively working to complete its review and looks forward to making the results available to the public and Congress upon completion.
The probe stemmed from President Donald Trump's accusations that Powell mishandled renovations to the Fed's buildings, with Trump claiming the costs were too high as part of a long-standing feud. 5 billion forecast. The Fed stated the renovations will reduce its costs over time.
Powell's term as Fed chair is nearing its end and expires on May 15, 2026, but he is planning to remain in post until his successor Warsh is confirmed by the Senate. Republican Thom Tillis withheld his support for Warsh unless the Trump administration drops its investigation into Powell.
