Trump DOJ drops Powell investigation, clearing path for Warsh Fed nomination
Consensus Summary
The US Department of Justice ended its criminal investigation into Federal Reserve Chair Jerome Powell on April 24–25, 2026, clearing a major obstacle for Donald Trump’s nominee, Kevin Warsh, to replace Powell when his term expires on May 15. The probe, which focused on a $2.5 billion renovation at the Fed’s headquarters, was widely criticized as politically motivated, with Powell previously calling it a pretext to pressure the Fed on interest rates. Republican Senator Thom Tillis had blocked Warsh’s confirmation until the investigation concluded, while Democrats warned Warsh’s appointment could undermine the Fed’s independence. The DOJ’s decision followed a judge’s ruling in March that prosecutors had found 'essentially zero evidence' of wrongdoing, though Attorney Jeanine Pirro reserved the right to reopen the case if new evidence emerges. The move follows Trump’s prolonged public feud with Powell over interest rate policy, with Trump demanding cuts to offset tariff-related inflation while the Fed prioritized stability. Meanwhile, the Supreme Court is expected to rule by June on Trump’s firing of Fed Governor Lisa Cook, adding another layer to the administration’s clashes with the central bank.
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Key details reported by multiple sources:
- US Department of Justice dropped its criminal investigation into Jerome Powell on April 24–25, 2026, citing an Inspector General review of Fed building cost overruns.
- Jeanine Pirro (US Attorney for DC) announced the closure of the Powell investigation and stated she would restart it if new evidence emerged.
- Powell’s term as Federal Reserve Chair ends on May 15, 2026.
- Donald Trump nominated Kevin Warsh to replace Powell as Fed Chair.
- Republican Senator Thom Tillis had threatened to block Warsh’s confirmation until the Powell investigation ended.
- The investigation focused on a $2.5 billion renovation project at the Federal Reserve headquarters (originally estimated at $1.9 billion).
- Powell previously stated the investigation was a pretext to pressure the Fed on interest rates.
- Trump has repeatedly criticized Powell for not lowering interest rates, calling him a 'moron' and threatening to sack him.
- The Supreme Court is expected to rule by June 2026 on Trump’s firing of Fed Governor Lisa Cook.
Points of Difference
Details reported by only one source:
- A Republican critic called the investigation 'bogus', while a Democratic critic said people were 'fooling themselves' if they thought Trump’s meddling in the Fed was over.
- Trump has insisted rates be cut to offset tariff-related price rises, while the Fed has resisted to avoid stoking inflation.
- Senator Thom Tillis insisted Trump had 'no knowledge' of the probe.
- Elizabeth Warren called Trump’s scheme to control the Fed 'corrupt'.
- Powell’s subpoena was first made public in January 2026, with Powell calling it a pretext to pressure the Fed on monetary policy.
- Thom Tillis told Warsh during his Senate hearing: 'Let’s get rid of the investigation so I can support your nomination.'
- Economists agree a non-political, independent central bank is essential for economic stability.
- The Supreme Court ruling on Lisa Cook’s firing is expected by June 2026.
- A prosecutor handling the Powell case conceded in March 2026 that the government had found 'essentially zero evidence' of a crime, and a judge quashed subpoenas.
- Trump visited the Fed building in July 2025 and publicly criticized the renovation costs, with Powell correcting his inflated estimate on camera.
- The investigation was part of broader DOJ probes into Trump’s adversaries, including Letitia James and James Comey, which also failed to gain traction.
Contradictions
Conflicting information between sources:
- The Guardian and ABC state the investigation was dropped due to lack of evidence, while NEWSCOMAU frames it as a strategic move to shift scrutiny to the Inspector General.
- NEWSCOMAU implies the investigation was widely seen as politically motivated, but ABC notes a judge explicitly called prosecutors' justification for subpoenas 'thin and unsubstantiated'.
- NEWSCOMAU and ABC mention the renovation cost overruns as $2.5 billion, but NEWSCOMAU also references a $1.9 billion original estimate without confirming if ABC agrees on the latter figure.
Source Articles
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US justice department drops criminal investigation against Jerome Powell
Move will remove obstacle for confirmation of Kevin Warsh, Trump’s pick to replace Powell as Federal Reserve chair Sign up for the Breaking News US email to get newsletter alerts in your inbox The US Department of Justice is dropping its criminal investigation against the Federal Reserve chair, Jerome Powell , clearing the path for Donald Trump ’s new nominee for chair to be confirmed. Jeanine Pirro, Trump’s appointed US attorney for the District of Columbia, said in a social media post that she
Trump's Justice Department drops investigation of Fed chair Jerome Powell
The move could lead to a swift confirmation vote by the Senate for Kevin Warsh, a former top Federal Reserve official whom President Donald Trump nominated in January to replace Mr Powell.