Justice Department Drops Its Criminal Probe of Fed Chair Jerome Powell, Clearing the Way for Trump's Successor

On April 24, 2026, U.S. Attorney for the District of Columbia Jeanine Pirro announced on X that she had directed her office to close its criminal investigation of Federal Reserve Chair Jerome Powell, writing, "I have directed my office to close our investigation as the IG undertakes this inquiry." The investigation had examined whether Powell committed fraud or made false statements to Congress about the cost of the Fed's headquarters renovation. Senator Thom Tillis had blocked confirmation of Trump's nominee to succeed Powell, Kevin Warsh, pending the probe's closure, telling Warsh at a hearing, "Let's get rid of this investigation so I can support your confirmation." Senator Elizabeth Warren called the probe a "bogus criminal investigation."

Opening and closing a criminal investigation of the sitting Federal Reserve chair, with the closure timed to unblock the confirmation of his replacement, links federal prosecutorial discretion to a Senate fight over control of monetary policy. The Fed's operational independence rests substantially on convention rather than structural protection from investigation.

The criminal investigation was closed April 24, 2026; an inspector general inquiry continued.