The Justice Department has concluded its criminal investigation into Federal Reserve Chair Jerome Powell, removing a significant obstacle to the confirmation of his potential successor, Kevin Warsh. On Friday, U.S. Attorney for the District of Columbia Jeannine Pirro announced on X that her office is halting the inquiry into the Federal Reserve’s major building renovations, deferring the matter to the Fed’s inspector general.
This closure ends one of several Justice Department probes targeting individuals seen as opponents of former President Donald Trump. The investigation had stalled for months, with prosecutors unable to establish grounds for suspected criminal activity.
During a private court session in March, a prosecutor admitted the government lacked evidence of any wrongdoing. Subsequently, Judge James Boasberg invalidated subpoenas directed at the Federal Reserve, noting that prosecutors provided virtually no evidence to implicate Powell and describing their rationale as weak and unsupported.
More recently, prosecutors attempted an unscheduled inspection of a construction area at the Fed’s headquarters but were denied access, prompting criticism from a defense lawyer who deemed the action improper.
This development may accelerate a Senate confirmation vote for Warsh, a former senior Fed official nominated by Trump in January to succeed Powell, whose term concludes on May 15. Republican Senator Thom Tillis of North Carolina had vowed to block Warsh’s confirmation until the probe was resolved.
On Tuesday, Warsh stated that he had not assured the White House of any interest rate reductions, amid ongoing presidential pressure for the central bank to lower rates.
“The president never requested a commitment to any specific interest rate action,” Warsh told the Senate Banking Committee. “I would not agree to such a thing if asked. If confirmed as Federal Reserve chair, I will act independently.”
Warsh’s remarks followed a CNBC interview where Trump indicated he would be disappointed if Warsh did not promptly cut rates, responding affirmatively when asked.
