DOJ Ends Probe Into Fed Chair Jerome Powell, Boosting Kevin Warsh Confirmation Prospects

The U.S. Department of Justice has officially ended its investigation into Federal Reserve Chair Jerome Powell, a decision announced by U.S. Attorney Jeanine Pirro that could significantly impact the future leadership of the central bank. The move removes a major hurdle to the potential confirmation of Kevin Warsh, former Fed governor and President Donald Trump’s nominee to replace Powell.

The investigation centered on rising renovation costs tied to the Federal Reserve’s Washington, D.C. headquarters. Originally budgeted years ago, the project has grown to approximately $2.46 billion—about $1.1 billion above initial estimates—largely due to inflation-driven increases in labor and material costs. Despite these concerns, a federal judge previously blocked DOJ subpoenas, citing a lack of evidence and suggesting the probe may have been politically motivated.

Pirro stated that instead of continuing the DOJ inquiry, the matter will now be handled by the Federal Reserve’s Office of Inspector General (OIG), which has already been reviewing the renovation project since mid-2025. The OIG is expected to release a comprehensive report that will address concerns over cost overruns and project management.

The decision to drop the investigation may help resolve political tensions that had stalled Warsh’s confirmation. Republican Senator Thom Tillis had refused to support Warsh while the probe remained active, calling it unfounded. With the DOJ stepping back, support for Warsh could increase, potentially clearing the path for his confirmation before Powell’s term as Fed chair ends in mid-May.

Powell, however, has indicated he will remain on the Federal Reserve Board until the review process is fully completed with transparency. Meanwhile, the White House has expressed confidence that the inspector general’s findings will bring clarity and allow the Senate to move forward.

This development highlights the intersection of politics, monetary policy, and oversight, as scrutiny of the Federal Reserve continues amid broader economic concerns.