DOJ Drops Unprecedented Criminal Investigation Into Fed Chair Jerome Powell
The U.S. Department of Justice announced it is ending an unprecedented criminal probe into Federal Reserve Chair Jerome Powell regarding costly building renovations at the central bank's headquarters
The U.S. Department of Justice announced on Friday that it is dropping a criminal investigation into Federal Reserve Chair Jerome Powell. The decision represents a sharp pivot in an unprecedented probe into the nation’s top economic official, following a Federal Open Market Committee meeting in Washington, D.C., on December 10, 2025. While the investigation was active, sources indicated that the DOJ faced pressure from senators regarding the nature and duration of the inquiry before the decision to close it was finalized.[1][2][3][5]
U.S. Attorney Jeannine Pirro of the District of Columbia stated that her office is ending the probe into the Federal Reserve’s extensive building renovations. The investigation had been focused on multi-billion dollar cost overruns associated with the central bank’s headquarters in Washington, D.C. Pirro explained that the criminal inquiry would be superseded by a review from the Federal Reserve’s own inspector general, who has been asked to scrutinize the project's financial management.[4][5]
The shift from a criminal investigation to an internal oversight review comes after the renovation project faced criticism for its significant expenses. The inspector general will now be responsible for examining the billions of dollars in building cost overruns that initially triggered the DOJ's interest. This transition effectively removes the immediate threat of criminal charges against Powell while maintaining official scrutiny over the central bank's capital expenditures.[3][4][5]
