A federal criminal probe into Federal Reserve Chair Jerome Powell has been closed, with the Justice Department shifting further review to the Fed’s inspector general. U.S. Attorney Jeanine Pirro said her office would end its inquiry into the Fed’s roughly $2.5 billion headquarters renovation but could reopen a case if new facts emerge. Senator Thom Tillis had withheld support for Kevin Warsh’s nomination pending the probe’s outcome, and the Senate Banking Committee has not scheduled a final vote.

Investigation closed, review shifted to IG The Justice Department's decision ends a months-long criminal inquiry into whether Federal Reserve officials, including Chair Jerome Powell, committed wrongdoing in relation to the board's multibillion-dollar renovation of its headquarters. U.S. Attorney Jeanine Pirro said on social media that her office is closing the probe while the inspector general undertakes its own review, and she added, “I won't hesitate to restart a criminal investigation should the facts warrant doing so,” according to her post. The renovation's total has been reported at roughly $2.5 billion, up from earlier estimates of about $1.9 billion, creating what prosecutors and lawmakers described as cost overruns exceeding $1 billion. Those figures and the discrepancy prompted the inquiry and sustained public scrutiny after former President Donald Trump criticized the project on camera during a July 2025 visit to the site. Prosecutors had subpoenaed documents and questioned witnesses about Powell’s brief testimony before the Senate Banking Committee last June. Court filings and hearings showed the Justice Department didn't yet have proof of criminal conduct, and a federal judge and several lawmakers criticized the probe as overreach. Confirmation stalled despite probe closure Kevin Warsh, a former Federal Reserve governor nominated by President Trump in January to be the next Fed chair, faces an uncertain path to confirmation even after the probe's closure. Senator Thom Tillis, a North Carolina Republican, publicly said he would withhold his vote until the investigation was resolved — a stance that effectively blocked progress in the GOP-controlled Senate Banking Committee. Republicans on the committee praised Warsh at his April hearing, while Democrats pressed him on his ties to the White House, financial disclosures and his stances on interest-rate policy. The committee hasn't yet set a date to advance the nomination to the full Senate. The White House pushed for a quick confirmation. White House spokesman Kush Desai said in a statement that the inspector general’s authorities make it better positioned to get answers for taxpayers, and expressed continued confidence that the Senate would “swiftly confirm Kevin Warsh as the next Federal Reserve Chairman to finally restore competence and confidence in Fed decision-making,” according to the statement. Inspector general will take the lead The Fed’s Office of Inspector General has told reporters it's actively working to complete an evaluation of the board’s building renovation project and will make the results public and available to Congress once finished. The inspector general carries auditing and oversight powers but doesn't bring criminal charges; any referral for prosecution would return to the Justice Department. Officials at the Fed previously asked the inspector general to review the project after the controversy grew. The inspector general also completed an audit in 2021 that examined the Board’s planning and contract procurement for multiple renovation projects, but the current evaluation aims to probe the more recent cost increases and how decisions were made. Senate Banking Committee Chairman Tim Scott, R-S.C., said the committee would keep up oversight and that he welcomed the IG’s inquiry, calling for a full accounting of how costs grew so large.

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Powell's term as Fed chair expires May 15, 2026.

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