The US Department of Justice (DOJ) has closed its investigation into Federal Reserve Chairman Jerome Powell, which could pave the way for the confirmation of his successor, Kevin Warsh.
U.S. Attorney for the District of Columbia Jeannine Pirro said her office was ending its investigation into extensive renovations to the Fed’s buildings because they will be reviewed by the Fed’s inspector general instead.
The investigation has been a stumbling block in the leadership transition at the Fed as Powell’s term ends in nearly three weeks.
According to The Associated Press, the prosecutor handling the case conceded in a closed-door court hearing in March that the government had yet to find any evidence of a crime, and a judge subsequently quashed the subpoenas issued to the Federal Reserve.
Judge James Boasberg said prosecutors had presented “essentially zero evidence” to suspect Powell of the crime. Boasberg plaintiffs’ justification for subpoenas as “inadequate and unsubstantiated.”
Trump vs. Powell
Trump, who appointed Powell during his first term, frequently clashed with the Federal Reserve chairman during his second term, demanding his immediate resignation.
Trump has repeatedly pushed Powell to aggressively cut interest rates to stimulate economic growth and lower federal borrowing costs, but Powell has repeatedly refused.
Trump, who said in April 2025 that Powell’s “termination can’t come fast enough,” has often threatened to fire Powell, though legal scholars say the president does not have the power to fire the Fed chairman without “cause.”
Despite mounting pressure from Trump, Powell also refused to budge on his demand and insisted on completing his term, which ends on May 15.
Senate confirmation of Kevin Warsh
In January, Trump announced his intention to nominate former Fed governor Kevin Warsh to replace Powell as chairman of the Federal Reserve. Trump revealed the choice after a meeting at the White House, saying he wanted a leader focused on lower interest rates.
But his Senate confirmation vote was delayed after Sen. Thom Tillis, R-North Carolina, said he would oppose Warsh until the investigation was resolved, effectively blocking his confirmation.
DOJ Investigates Trump Opponents
The decision to drop the investigation into Powell is the latest in a series of legal setbacks by the Justice Department against perceived Trump opponents.
This includes the Justice Department’s investigations of former FBI Director James Comey, New York Attorney General Letitia James and former CIA Director John Brennan, among others.
Most of these charges were withdrawn by the courts or the investigation was stopped.
