Full Breakdown
Justice Department Ends Probe of Fed Chair Jerome Powell, Paving Way for Kevin Warsh Confirmation
4/25/2026, 12:37:29 AM
Investigation Closure Clears Path for New Fed Chair
On April 24, 2024 the U.S. Department of Justice announced it was ending its criminal investigation into Federal Reserve Chair Jerome Powell’s extensive building-renovation program. The decision removes the primary obstacle that had stalled Senate consideration of President Donald Trump’s nominee, former Fed governor Kevin Warsh, whose term would begin after Powell’s May 15 departure.
Background: DOJ Probe into Fed Renovations
The probe, launched in early 2023, focused on alleged cost overruns and possible misconduct in the Fed’s headquarters renovation. Prosecutors struggled to articulate a criminal basis; a March closed-door hearing revealed no evidence of wrongdoing, and a federal judge subsequently quashed subpoenas targeting the Fed.
Key Figures
- Jerome Powell – Outgoing Fed chair.
- Kevin Warsh – Trump’s nominee for chair.
- Donald Trump – President, vocal critic of the Fed.
- Jeanine Pirro – U.S. Attorney for the District of Columbia, announced the closure.
- James Boasberg – U.S. District Judge who dismissed the subpoenas.
- Thom Tillis – Republican senator who had blocked Warsh’s confirmation pending resolution.
- Kush Desai – White House spokesman.
Timeline of the Probe
- Early 2023 – DOJ opens investigation into Fed renovation spending.
- March 2024 – Closed-door hearing; prosecutor admits no evidence of a crime.
- March 2024 – Judge James Boasberg quashes subpoenas, calling the justification “thin and unsubstantiated.”
- April 24 2024 – U.S. Attorney Pirro announces the investigation is closed.
Data & Statistics
- Judge Boasberg described the government’s evidence as “essentially zero evidence.”
- No criminal charges were filed against any Fed official.
Impact on Fed Independence and Confirmation Process
The closure is expected to enable a swift Senate vote on Warsh, though Democrats continue to question his independence from the Trump administration. Critics argue the probe’s existence threatened the perception of central-bank autonomy, while supporters view the end of the case as a return to normal governance.
Official Statements & Responses
- Jeanine Pirro: “I have directed my office to close our investigation.”
- Kush Desai (White House): The administration remains “confident” the Senate will confirm Warsh quickly.
- Thom Tillis (R-NC): Previously said he would block any appointment until the probe was resolved.
- Kevin Warsh (Senate Banking Committee): “The president never once asked me to commit to any particular interest rate decision, period.”
- Donald Trump (CNBC interview): When asked about Warsh’s rate cuts, he replied, “I would.”
Criticism & Opposition
Democratic senators raised concerns about Warsh’s ties to Trump and his lack of transparency on financial holdings. Former Fed officials and several lawmakers described the investigation as an attempt to undermine the central bank’s independence, noting the DOJ’s aggressive pursuit of Trump’s perceived adversaries.
Conflicting Reports & Gaps
All sources agree the probe was terminated on April 24 and that no evidence of criminal conduct was found. However, reliability ratings differ; two right-leaning outlets provide no explicit reliability assessment, while AP-affiliated reports assign moderate confidence. The precise original allegations prompting the investigation remain unspecified.
Verbatim Quotes
- “I have directed my office to close our investigation,” — Jeanine Pirro, U.S. Attorney
- “essentially zero evidence” — Judge James Boasberg
- “thin and unsubstantiated.” — Judge James Boasberg
- “The president never once asked me to commit to any particular interest rate decision, period,” — Kevin Warsh, former Fed official
- “I would.” — Donald Trump, CNBC interview
What’s Next
The Senate Banking Committee is expected to schedule a final confirmation vote on Warsh within weeks. If confirmed, Warsh will assume the chairmanship on May 15, inheriting a Federal Reserve under heightened political scrutiny.
