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US justice department drops probe into Fed chairman Jerome Powell
The U.S. Justice Department has dropped its criminal probe into Federal Reserve Chair Jerome Powell and ordered an internal investigation by the Fed's inspector general. The decision comes amid political pressure from President Trump and ongoing questions about Powell's tenure and his potential successor, Kevin Warsh, with Republican lawmakers tying Warsh's confirmation to the probe's status.
Why It Matters
The move touches on Fed independence and fiscal oversight of its building renovations, while influencing the political calculations around Warsh's Senate confirmation.
Timeline
6 Events
Powell's term expires May 15, 2026; he plans to stay until Warsh is confirmed
May 15, 2026
Powell's term as Fed chair is set to expire on May 15, 2026, but he said he plans to remain in post until his successor, Kevin Warsh, is confirmed by the Senate.
DOJ drops probe; internal IG investigation to proceed; Warsh nomination and support tied to probe
April 24, 2026
The Department of Justice is dropping its investigation into Powell and will conduct an internal investigation led by the Fed inspector general. White House spokesperson Kush Desai expressed confidence in Warsh's Senate confirmation, while key Republican Senator Thom Tillis has withheld support for Warsh unless the investigation is dropped. Federal Reserve Governor Powell had previously acknowledged the investigation; Pirro said she would not hesitate to restart a criminal inquiry if warranted.
Trump threatens to fire Powell if he does not step aside
April 18, 2026
Last week, Trump threatened to fire Powell if he does not step aside at the end of his term next month as part of the ongoing dispute over monetary policy and leadership.
Powell releases January 2026 video about subpoenas and indictment
January 2026
Powell released a video in January 2026 disclosing that the Justice Department had served the Fed with subpoenas and threatened a criminal indictment over testimony he gave to a Senate committee about renovations to Federal Reserve buildings, describing the move as unprecedented and suggesting it was driven by political pressure.
Last summer: Trump criticizes Fed renovation costs
2025
Last summer, Trump criticized the ballooning costs of the Federal Reserve's building renovations, arguing they would total about $3.1 billion, higher than the Fed's $2.5 billion forecast. The Fed says the renovations will reduce costs over time.
Powell nominated by Trump for Fed chair in 2017
2017
Jerome Powell was nominated by President Donald Trump to serve as chair of the Federal Reserve in 2017, during Trump's first term as president.