DOJ Drops Criminal Investigation Into Fed Chair Jerome Powell

The U.S. Department of Justice is dropping its criminal investigation into Federal Reserve Chair Jerome Powell, concluding a period of legal scrutiny over the central bank's operations. U.S. Attorney Jeannine Pirro announced that her office would end the probe, which specifically focused on extensive renovations conducted at the Federal Reserve's buildings. Sources familiar with the matter indicated that the decision to halt the investigation was expected to be finalized as early as Friday.^[1][2][3]

The decision to terminate the criminal probe comes amid reports of pressure from members of the U.S. Senate regarding the investigation into the Fed chair. Pirro stated that the Department of Justice is stepping aside because the Federal Reserve’s own inspector general will now take over the responsibility of scrutinizing the building renovations. This transition moves the oversight of the matter from federal prosecutors to the central bank's internal watchdog, which is tasked with independent audits of the agency's activities.^[1][2][3]

The shift in the investigation ensures that the Federal Reserve's building projects will still face official review, though the matter will no longer be handled as a criminal probe by the Justice Department. By transferring the case to the inspector general, the inquiry remains within the oversight framework of the central bank. This move effectively ends the immediate threat of criminal charges from the U.S. Attorney's office regarding the renovation expenses.^[1][3]