President Trump and Federal Reserve Chair Jerome Powell tour the Federal Reserve's $2.5 billion headquarters renovation project on July 24, 2025. Chip Somodevilla/Getty Images hide caption

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Chip Somodevilla/Getty Images

The U.S. Justice Department is dropping its investigation of Fed Chair Jerome Powell, paving the way for the Senate to confirm Kevin Warsh, the president's nominee to head the central bank.

"This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers," U.S. Attorney for D.C. Jeanine Pirro said in a post on X. "Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry."

At issue is a renovation project at the Fed's Washington headquarters. The Fed's inspector general has reviewed the construction project twice. It found no wrongdoing.

The move paves the way for the Senate to confirm Warsh, Trump's nominee to head the Fed. Sen. Thom Tillis, R-N.C., had threatened to block the nomination unless the Justice Department dropped the investigation into Powell.

This is a developing story and will be updated