US Justice Department closes criminal probe into Fed chair Jerome Powell
Jurisdiction over the matter has been transferred to the Federal Reserve's Office of the Inspector General, ending the investigation into alleged cost overruns on the Washington headquarters renovations.
The United States Justice Department has concluded its criminal investigation into former Federal Reserve Chair Jerome Powell regarding alleged cost overruns on the renovation of the Federal Reserve's headquarters in Washington. The closure of the probe was announced by US Attorney Jeanine Pirro in approximately 2025, marking a significant procedural shift in the handling of the matter.
Following the announcement, responsibility for the investigation has been transferred from the Justice Department to the Federal Reserve's Office of the Inspector General (OIG). While the full extent of the OIG's subsequent review into the renovation costs remains undetailed, the move signals a change in oversight from the federal prosecutors to the central bank's internal audit arm.
The removal of the active DOJ probe carries immediate political consequences for the appointment of the next Federal Reserve Chair. Senator Thom Tillis had previously utilised the status of the criminal investigation to block or delay the confirmation process. With the legal obstacle now lifted, the path appears clearer for the confirmation of Kevin Warsh as the incoming Federal Reserve Chair.
This development aligns with broader efforts to accelerate the transition of leadership at the central bank. The specific outcome of the investigation, announced as a closure in approximately 2025, suggests that the initial allegations regarding financial management at the Fed's headquarters will not proceed as a criminal case against the former chair.
The decision by the Justice Department effectively removes the primary legal hurdle that had stalled the confirmation timeline. As the matter shifts to the Office of the Inspector General, the focus moves from criminal liability to internal administrative review, altering the dynamic for those involved in the leadership selection process.
The closure of the probe represents a definitive step in the current political and regulatory landscape surrounding the Federal Reserve. By ending the criminal inquiry, the Justice Department has cleared the way for the confirmation process to proceed without the previous legal constraints, allowing the appointment of the new chair to move forward.
