DOJ Ends Probe into Fed Chair Powell Over Renovation Costs

The Justice Department announced on Friday that it is ending its criminal investigation into Federal Reserve Chair Jerome Powell over cost overruns in a major renovation project at the central bank's Washington headquarters, paving the way for a smoother Senate confirmation of President Donald Trump's nominee to succeed him, Kevin Warsh.

U.S. Attorney for the District of Columbia Jeannine Pirro stated on X that her office is closing the probe because the Federal Reserve's inspector general will now examine the renovations. "This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns in the billions of dollars that have been borne by taxpayers," Pirro wrote. "The IG has the authority to hold the Federal Reserve accountable to American taxpayers." She added that her office would not hesitate to reopen a criminal investigation if new facts emerge.

The investigation, launched in January 2026, centered on a $2.5 billion project to update two historic buildings at the Fed's headquarters, which had not been comprehensively renovated since the 1930s. Initial estimates pegged costs at $1.9 billion, but they rose due to unforeseen...