WASHINGTON — The Justice Department has officially closed its criminal investigation into Federal Reserve Chair Jerome Powell, bringing an end to a months-long probe that had raised questions about the independence of the central bank and the future of its leadership.
U.S. Attorney Jeanine Pirro announced the decision, saying she had directed her office to shut down the investigation, which focused on alleged misstatements and cost overruns tied to a multibillion-dollar renovation of Federal Reserve buildings.
What the Investigation Was About
The probe, launched in late 2025 and escalated in early 2026, examined whether Powell misled Congress about the scope and cost of renovations at the Fed’s Washington headquarters.
At its peak, the investigation included subpoenas and legal battles with the Federal Reserve, marking an unprecedented moment in which a sitting Fed chair faced potential criminal scrutiny.
However, a federal judge later blocked key subpoenas, citing a lack of evidence — a major blow to prosecutors’ case.
No Charges — But Oversight Continues
While the DOJ has dropped its criminal inquiry, the matter is not fully closed.
- The Federal Reserve’s inspector general will now review the renovation spending
- Officials have left open the possibility of reopening the case if new evidence emerges
Powell has consistently denied any wrongdoing throughout the investigation.
Political and Economic Implications
The decision removes a major source of uncertainty surrounding the Federal Reserve at a critical moment.
The probe had:
- Heightened tensions between the Trump administration and the Fed
- Raised concerns about political pressure on monetary policy
- Complicated the confirmation process for a potential successor
With the investigation now closed, the path may be clearer for President Trump’s nominee, Kevin Warsh, to move forward in the Senate as Powell’s term approaches its scheduled end.
Why It Matters
The case was widely seen as extraordinary, given the Federal Reserve’s long-standing independence from political interference.
Ending the investigation without charges underscores both:
- The difficulty of proving criminal misconduct in complex financial oversight cases
- The sensitivity of targeting central bank leadership through legal channels
Bottom Line
The Justice Department’s decision closes a rare and contentious chapter involving the nation’s top central banker.
While criminal liability is now off the table, continued scrutiny of the Fed’s spending — and the broader political tensions surrounding its leadership — are likely to persist.
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