Full Breakdown
DOJ Ends Criminal Probe of Fed Chair Jerome Powell, Clearing Path for Kevin Warsh
4/25/2026, 11:51:36 AM
Core Event
On April 24 2026 U.S. Attorney Jeanine Pirro announced Justice Department is closing its criminal probe of Fed Chair Jerome Powell over renovation cost overruns, transferring the case to the Fed’s Office of Inspector General.
Background & Timeline
Powell disclosed in a January 2026 video that subpoenas were issued over his renovation testimony. Judge James Boasberg quashed them in March 2026, finding no evidence. Warsh, the nominee, testified on April 21 2026; Senator Thom Tillis blocked his confirmation until the probe ended.
Key Figures & Groups
Jerome Powell – Fed chair (term ends May 15 2026). Jeanine Pirro – attorney who closed the probe. Kevin Warsh – Fed nominee. Thom Tillis – senator who blocked Warsh’s confirmation. Kush Desai – White House spokesman. Michael Horowitz – Fed inspector general.
Data & Statistics
The 2023 renovation budget was $1.9 billion; by 2025 it rose to $2.5 billion, a $600 million increase due to design changes, higher material costs, and unexpected site conditions.
Why It Matters
Ending the probe clears the main obstacle to Warsh’s confirmation, aligning Fed policy with President Trump’s rate-cut agenda. The case also highlights tensions over central-bank independence when legal actions intersect monetary policy.
Official Statements & Responses
Pirro said OIG can hold Fed accountable and expects its report to resolve issue. White House spokesman Desai stressed taxpayers’ right to answers and expressed confidence Senate will confirm Warsh. Warsh pledged to keep Fed “strictly independent.” Fed declined comment.
Criticism & Opposition
Senator Elizabeth Warren (D-MA) called DOJ move an attempt to clear path for Warsh, labeling probe bogus. Rep. Anna Paulina Luna (R-FL) said Powell misled Congress on costs. Rep. French Hill welcomed the development.
Conflicting Reports & Gaps
President Trump cited a $3.1 billion cost, which Powell disputed. Prosecutors were denied entry on an unannounced site visit. The DOJ has not released a detailed rationale for ending the probe, and the OIG’s final report is pending.
Verbatim Quotes
- “Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry.” — Jeanine Pirro, U.S. Attorney
- “The IG has the authority to hold the Federal Reserve accountable to American taxpayers.” — Jeanine Pirro
- “No one — certainly not the chair of the Federal Reserve — is above the law.” — Jerome Powell
- “Kevin Warsh is a great nominee to be Chairman of the Federal Reserve, and I look forward to supporting him out of committee once the DOJ drops their bogus investigation into Chairman Powell that threatens the independence of the Fed,” — Thom Tillis, Senator
What's Next
The OIG is expected to deliver a comprehensive report within 90 days. Senate Banking Committee Chair Tim Scott said the panel will be briefed on its findings, and a Warsh confirmation vote is anticipated before Powell’s chairmanship ends on May 15.
