US Justice Department Concludes Investigation into Federal Reserve Chairman

Sat Apr 25 2026 04:20:40 GMT+0000 (Coordinated Universal Time)

The US Justice Department has decided to end its investigation into Jerome Powell, the Federal Reserve Chairman, concerning alleged construction cost overruns. An internal review will now be conducted.

The US Justice Department has dropped its probe into Federal Reserve Chairman Jerome Powell related to concerns over excessive building renovation costs. Instead, an internal investigation led by the Fed's inspector general will take place. This decision comes amidst ongoing tensions between Powell and President Trump, who has previously criticized the Fed's renovation expenses. Trump has signaled intentions to nominate Kevin Warsh as Powell's successor, contingent on the dropping of the investigation. The Fed's internal review is expected to shed light on the financial mismanagement allegations raised by the Trump administration.

The US Justice Department has opted to terminate its investigation into Jerome Powell, the chairman of the Federal Reserve, over allegations of budget overruns concerning building renovations. Instead of pursuing a criminal inquiry, US Attorney Jeanine Pirro announced that the Federal Reserve will undergo an internal investigation conducted by its inspector general.

President Donald Trump has been an outspoken critic of the renovation costs, which he deems excessively high, leading to a public feud with Powell. As Powell's term is set to conclude soon, the Senate is reviewing Trump's nomination of Kevin Warsh as Powell's potential replacement. However, Republican Senator Thom Tillis has expressed that he would withhold support for Warsh unless the investigation into Powell was dropped.

In light of this situation, White House spokesman Kush Desai emphasized the need for a thorough examination of the Federal Reserve's financial practices, asserting that the inspector general's expanded powers would be crucial in uncovering the truth behind the fiscal mismanagement claims. The White House remains optimistic about Warsh's swift confirmation in order to restore public confidence in the Fed's decision-making.

Pirro noted on social media that she would reconsider reopening the investigation if new evidence warranted it. The Federal Reserve declined to offer comments, while the inspector general’s office stated it is diligently working on the review and will provide findings to the public and Congress upon completion.

Trump has previously pressured the Fed to lower interest rates and has threatened to dismiss Powell for not heeding these requests. He has labeled Powell as a poor leader for the Fed, intensifying criticism over the costly renovations, which have been estimated to arise well above forecasts, reaching up to $3.1 billion.

The buildings under renovation are the Eccles and 1951 Constitution Avenue structures, marking their first significant updates since their original construction in the 1930s, including essential safety measures such as asbestos and lead removal.

Jerome Powell, who was appointed by Trump as chairman in 2017, plans to remain in his role until Warsh's Senate confirmation