David GilmourApr 24th, 2026, 10:49 am

The Justice Department dropped its criminal investigation into Federal Reserve chair Jerome Powell on Friday, removing a key obstacle to President Donald Trump’s effort to install his own pick at the central bank.

In January, the DOJ launched the probe into the chair’s congressional testimony over the multibillion-dollar renovation and alleged cost overruns at the Fed’s Washington headquarters.

Powell, whose term ends in May, had characterized the probe as an attempt by the administration to coerce him into cutting interest rates, which he has repeatedly resisted to the frustration of Trump. The chair had recently said he had “no intention” of stepping down until a Justice Department probe into him was concluded.

Abandoning the case clears the way for Trump’s nominee to succeed Powell, Kevin Warsh, to advance toward a Senate confirmation vote.

Warsh’s path had been effectively stalled as a result of the probe, with Senator Thom Tillis (R-NC) and others refusing to proceed while the investigation remained open.

U.S. Attorney Jeanine Pirro announced the decision in a statement to X and said the matter would now be handed to the Federal Reserve’s inspector general.

“I have directed my office to close our investigation as the IG undertakes this inquiry,” she said in a statement posted to X.

She added that she would “not hesitate to restart a criminal investigation should the facts warrant doing so.”

This is a developing story and will be updated.

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