The criminal investigation of Federal Reserve Chair Jerome Powell ended Friday in a post on X by U.S. Attorney Jeanine Pirro, three days after Kevin Warsh, Trump’s nominee to succeed Powell, testified at his Senate confirmation hearing. The closure removed Sen. Thom Tillis’s (R-NC) hold on Warsh’s nomination, which had deadlocked the Senate Banking Committee at 12-12 since the probe began in January. The investigation produced no indictment and no evidence of a crime. Prosecutors conceded as much in court filings, and the chief federal judge in Washington ruled in March that the subpoenas served on the Fed were a pretext for political pressure. Pirro had told reporters on April 22 that she remained committed to the investigation. Powell’s term as Fed chair ends May 15. The renovation project that prompted the investigation is now estimated at $2.5 billion, up from $1.9 billion at original budgeting. The two Federal Reserve buildings under renovation have not been comprehensively renovated since their construction in the 1930s.
Pirro’s office served grand jury subpoenas on the Fed on January 9. Powell publicly disclosed the subpoenas in a Sunday evening video on January 11, stating that the criminal threat followed the Fed’s decision to set interest rates on its own judgment rather than to Trump’s preferences. Tillis announced his hold on Fed nominees within hours.
The Fed Board of Governors challenged the subpoenas in sealed court proceedings in February. On March 11, Chief Judge James Boasberg quashed them. The opinion, unsealed two days later, said the government had produced “essentially zero evidence” of any crime by Powell and concluded that the dominant purpose of the subpoenas was to pressure Powell to vote for lower interest rates or resign and make way for a successor. The DOJ moved for reconsideration on March 16, and Boasberg denied that motion on April 3.
In subsequent court filings, prosecutors stated they did not have evidence that any crime had been committed but offered “1.2 billion reasons for us to look into it” — a reference to the renovation cost overrun. The Fed has attributed the increase from $1.9 billion to $2.5 billion to undisclosed lead and asbestos in the 1930s buildings and to construction inflation.
The Federal Reserve Office of Inspector General opened its own review of the renovation in July 2025 at Powell’s request. In her Friday post, Pirro stated she was closing the criminal investigation to allow the inspector general to examine the cost overruns. The Inspector General’s office told NBC News that the review Pirro referenced was not new and that the office was continuing the review Powell requested in July 2025.
Tillis told Warsh at the April 21 confirmation hearing, “Let’s get rid of this investigation, so I can support your confirmation.” Trump told CNBC that same day it was “possible” Powell was profiting from the renovation project. On April 15, Trump told Fox Business he would fire Powell if Powell did not step aside on May 15. Tillis announced his retirement at the end of his term in January 2027.
Senate Banking Committee Chair Tim Scott (R-SC) invited the IG to brief the committee within 90 days. Senate Majority Leader John Thune said the day after Warsh’s hearing that the administration should resolve the investigation. Sen. Elizabeth Warren (D-MA), the committee’s ranking Democrat, said Pirro’s announcement was an attempt to clear the way for Warsh’s confirmation and that a separate criminal probe of Fed Governor Lisa Cook continues.
Trump moved to fire Cook in August 2025 over allegations she made false statements on mortgage applications. Cook denied the allegations, sued to block her termination, and remains on the Fed’s Board of Governors after lower courts blocked her removal. The Supreme Court heard arguments in her case January 21 and has not yet ruled.
The probe began with grand jury subpoenas in January and ended in a post on X. It produced no indictment and no evidence of a crime. Powell’s term as Fed chair ends May 15; he said in March he would serve as chair pro tempore until a successor takes office if the Senate had not confirmed Warsh by then. His term as governor runs until January 2028, and he has not said whether he will remain on the Board after his chairmanship ends.
Support Independent Local Journalism — High Country Advocate was created as a real alternative to regional media that too often silences dissenting voices while taking sides in the political struggle. Producing in-depth, unflinching reporting like this series and others is expensive: servers, editing, research time, and legal review all add up quickly. If these articles have informed you or given you new perspective, please consider supporting HCA with a paid subscription — every subscriber helps keep this reporting strong and independent. 