Federal Reserve Chairman Jerome Powell speaks during a news conference after the Federal Open Market Committee meeting at the Federal Reserve in Washington, DC on October 29, 2025.
Alex Wong | getty images
The Justice Department on Friday dropped a criminal investigation into Federal Reserve Chairman Jerome Powell, clearing a major hurdle in President Donald Trump’s bid to nominate Kevin Wersh to replace him.
Jeanine Pirro, the top federal prosecutor for the District of Columbia, announced her decision to drop the Powell investigation on June 12.
Pirro said Wednesday he was committed to continuing the investigation, which was interrupted by a federal judge’s decision to block a subpoena his office issued to the Federal Reserve related to the billion-dollar renovation of its headquarters in Washington.
North Carolina Republican Sen. Thom Tillis had effectively blocked the Senate from confirming Warsh until the criminal investigation of Powell was dropped.
Pirro said Friday that the Fed’s inspector general, an internal watchdog, had been asked to investigate cost overruns at the headquarters project, which was the alleged basis for the criminal investigation of Powell.
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said in his post.
He said, “I expect a comprehensive report shortly and am confident that its findings will help resolve once and for all the questions that led this office to issue the subpoenas.”
“Accordingly, I have directed my office to close our investigation as the IG conducts this investigation,” Pirro said.
“Please note, however, that I will not hesitate to reopen a criminal investigation if I feel the need to do so based on the facts.”
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