Trump DOJ Drops Powell Probe After Tillis Blocks Warsh Confirmation
The Justice Department has dropped its criminal investigation into Federal Reserve Chair Jerome Powell, a move that immediately reshapes the fight over who leads the central bank next.
The decision removes a key roadblock for President Donald Trump’s nominee, Kevin Warsh, after a weeks-long standoff with Republican Sen. Thom Tillis threatened to derail the confirmation process.
According to Reuters and Axios, U.S. Attorney Jeanine Pirro announced the DOJ will close its case and hand the matter to the Federal Reserve’s Inspector General, ending the immediate risk of criminal charges tied to renovation cost overruns.
The probe had focused on Powell’s testimony about billions in upgrades to the Fed’s Washington headquarters, but a federal judge previously blocked subpoenas, citing a lack of evidence and improper purpose.
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“I have directed my office to close our investigation as the IG undertakes this inquiry,” Pirro said.
The shift appears to resolve Tillis’ central objection, as he had vowed to block any Fed nominee until the investigation ended, citing concerns about political interference with central bank independence.
Still, the resolution is not complete.
The investigation itself is not fully gone, only moved internally, leaving open questions about whether findings could reignite political or legal pressure on the Fed.
With Powell’s term set to expire May 15, the timeline now puts pressure on the Senate to act quickly on Warsh’s nomination, which had been stalled despite Republican control.
The outcome could set a precedent for how far executive authority can reach into independent institutions.
For now, the immediate barrier is gone, but the institutional conflict remains unresolved.
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