DOJ Drops Criminal Investigation Into Federal Reserve Chair Jerome Powell

WASHINGTON — The Department of Justice announced on April 24, 2026, that it has closed its criminal investigation into Federal Reserve Chair Jerome Powell.

U.S. Attorney for the District of Columbia Jeanine Pirro confirmed the decision, ending a probe that began in late 2025 and had become a flashpoint in tensions between the Trump administration and the central bank.

The inquiry originated from Powell’s June 2025 testimony before the Senate Banking Committee regarding the Federal Reserve’s $2.5 billion renovation of its Washington, D.C., headquarters. Prosecutors examined whether Powell made false or misleading statements about the project’s scope, costs, and features — including allegations that he downplayed luxury elements such as a VIP dining room, premium marble, water features, a roof terrace garden, skylights, and other upgrades.

Rep. Anna Paulina Luna (R-Fla.) formally referred Powell for criminal investigation in July 2025, citing what she called factual inaccuracies in his sworn testimony. The DOJ, under U.S. Attorney Jeanine Pirro, opened the probe in November 2025 and issued grand jury subpoenas to the Federal Reserve in early January 2026.

Powell responded publicly on January 11, 2026, stating the subpoenas threatened a criminal indictment related to his testimony. He described the investigation as a pretext, saying: “This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. ... The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”

U.S. District Judge James Boasberg blocked the subpoenas in March 2026, ruling that prosecutors had presented “no evidence whatsoever” of a crime and that the probe appeared aimed at pressuring Powell over interest-rate policy rather than legitimate oversight. The DOJ appealed, but the investigation produced no charges.

The closure removes a significant obstacle to Senate confirmation of President Trump’s nominee Kevin Warsh to succeed Powell, whose term as chair ends in May 2026.