Federal prosecutors step back from investigation into renovation costs while review authority transfers to internal watchdog.
By yourNEWS Media Newsroom
The Department of Justice has ended its criminal investigation into Jerome Powell concerning the escalating costs tied to renovations at the Federal Reserve’s headquarters, according to an announcement Friday from Jeanine Pirro.
Pirro said in a statement posted to X that the Federal Reserve’s Inspector General has been tasked with examining cost overruns associated with the project, which she described as reaching into the billions of dollars and ultimately borne by taxpayers. “Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry,” she wrote.
She added that the decision does not preclude future action, stating, “Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.” Pirro said she expects a comprehensive report from the Inspector General in the near term and indicated that its findings would help address the issues that initially prompted subpoenas.
A spokesperson for the White House, Kush Desai, said the administration supports the shift in oversight. “American taxpayers deserve answers about the Federal Reserve’s fiscal mismanagement, and the Office of the Inspector General’s more powerful authorities best position it to get to the bottom of the matter,” he said. Desai also stated that the administration remains confident the Senate will move forward on confirming Kevin Warsh as the next Federal Reserve chairman.
The Federal Reserve declined to comment on the development.
The investigation had focused on rising costs tied to the renovation of the central bank’s headquarters, which exceeded earlier projections of $2.5 billion. The probe began after allegations were raised in 2025, when Anna Paulina Luna referred Powell to the DOJ over claims of perjury related to his testimony before the Senate Banking Committee.
The U.S. Attorney’s Office for the District of Columbia formally launched its investigation in January. The decision to close the case follows comments from Tim Scott, chairman of the Senate Banking Committee, who said earlier this week that the matter could be addressed through congressional oversight rather than criminal proceedings, as reported by CNBC. Scott said he viewed the issue as one of competence rather than criminal conduct.
The move also removes a potential obstacle for Warsh’s nomination. Thom Tillis had previously pledged to block the nomination while the investigation remained active, describing it as unfounded in separate remarks reported.
With the criminal inquiry now closed, responsibility for reviewing the Federal Reserve’s renovation expenditures rests with the Inspector General, whose findings are expected to determine whether further action is warranted.
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