U.S. Attorney Suspends Probe of Fed Chair Jerome Powell

On May 3, 2026, U.S. Attorney Jeanine Pirro announced she is suspending the criminal investigation she opened in January into Fed Chair Jerome Powell over alleged cost overruns in the Fed’s headquarters renovation. She directed the Justice Department to rely on the Fed’s Office of Inspector General, saying its findings will decide any further action.

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The probe began as President Donald Trump urged the Fed to cut rates, putting Powell under pressure. Powell asked the Fed’s OIG to examine the renovation costs in 2025. In March, Chief Judge James Boasberg blocked Pirro’s subpoenas, finding they were intended to coerce Powell to lower rates or resign.

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Jeanine Pirro, U.S. Attorney; Jerome Powell, Fed Chair; James Boasberg, Chief Judge; Michael Horowitz, Fed Inspector General; Thom Tillis, Senator; Kevin Warsh, Fed-chair nominee.

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• Jan 2026 – Pirro opens probe.

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• Mar 2026 – Judge Boasberg blocks subpoenas.

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• Apr 2026 – Pirro files motion to vacate.

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• May 3 2026 – Pirro suspends probe, defers to OIG; Tillis welcomes pause and Warsh’s confirmation proceeds.

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Pirro said OIG “the only way to find out what happened” and she will “continue to litigate.” Tillis said it is “the way this process is supposed to work” and that “no crime was committed.” Powell said he is “encouraged by recent developments” and will stay on Fed after his term ends. Boasberg warned subpoenas were meant to pressure Fed chair.

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Republican critics, led by Tillis, argued the probe threatened Fed independence and was politically motivated. Legal analyst Sean P. Murphy questioned Pirro’s standing to vacate past convictions or erase a failed investigation, raising procedural concerns.

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Sources differ on whether Pirro has abandoned her appeal; some say she “abandoned a plan to appeal,” while others report she “still intends to file a motion to vacate.” OIG’s report date remains undisclosed, leaving uncertainty about a renewed probe’s start.

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• “If there's something there, great - and if there isn't, I'll go home.” — Jeanine Pirro, U.S. Attorney

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• “A mountain of evidence suggests that the government served these subpoenas on the board to pressure its chair into voting for lower interest rates or resigning,” — James Boasberg, Chief Judge

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• “At the end of the day, no crime was committed, and the prosecutors I spoke with all agree,” — Thom Tillis, Senator

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• “A motion to vacate is essentially asking the judge to just pretend something never happened,” — Sean P. Murphy, former Assistant U.S. Attorney

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The OIG, led by Michael Horowitz, is expected to release its report in the coming weeks. Pirro has signaled she will file a motion to vacate Judge Boasberg’s order and may reopen the criminal probe if the OIG finds wrongdoing. Senate Banking Committee is set to confirm Kevin Warsh as Fed chair pending the investigation’s outcome.

Reuters