DOJ Ends Criminal Probe Into Fed Chair Powell’s Renovations Testimony
The DOJ has closed its criminal probe of Fed Chair Jerome Powell regarding building renovations testimony.
Why it matters: Federal Reserve leadership faced months of legal scrutiny over allegations linked to renovation cost disclosures—closing the case curtails legal risk for the central bank and clarifies the path for the next Chair’s confirmation process, with implications for regulatory compliance and transparency standards.
- The DOJ officially ended its investigation into Jerome Powell on April 24, 2026.
- The case involved whether Powell misled Congress about $2.5 billion in Fed renovations.
- Judge James Boasberg found no evidence of criminal conduct and quashed key subpoenas.
- The closure shifts review to the Fed Inspector General and smooths confirmation for nominee Kevin Warsh.
The U.S. Department of Justice ended its criminal investigation into Federal Reserve Chair Jerome Powell on April 24, 2026. The probe, which focused on whether Powell misrepresented facts to Congress about the escalating costs of Federal Reserve headquarters renovations (from $1.9 billion to $2.5 billion), had raised concerns over political influence on the Fed and legal exposure for central bank leadership.
- U.S. Attorney for the District of Columbia Jeanine Pirro announced the DOJ’s withdrawal, stating that the office would step aside as the Federal Reserve Inspector General takes over the internal review: “I have directed my office to close our investigation as the IG undertakes this inquiry.”
- Legal scrutiny intensified after subpoenas sought further documentation and testimony, but U.S. District Judge James Boasberg quashed the effort, citing "essentially zero evidence” of criminal conduct and observing, “The government has offered no evidence whatsoever that Powell committed any crime other than displeasing the president.”
- The case’s closure removes a significant hurdle for President Trump’s nomination of Kevin Warsh, which now heads toward Senate consideration with the investigation no longer hanging over the process.
By moving oversight to the Inspector General, DOJ is signaling that, while transparency around central bank spending is essential, criminal liability must rest on clear evidence, not political disputes. Legal teams in financial institutions will note that the episode underlines the importance of precise disclosures and strict compliance—areas subject to greater scrutiny in public sector project management and regulatory reporting.
Legal professionals are advised to watch for the Inspector General’s findings, which could prompt new compliance and disclosure recommendations for the Federal Reserve and other government entities.
By the numbers:
- $2.5 billion — total cost of Fed headquarters renovations examined in the probe
- April 24, 2026 — date DOJ formally closed investigation into Chair Powell
Yes, but: The Inspector General’s review of the renovations is ongoing and could result in additional findings or recommendations for compliance improvements.
What's next: Inspector General’s report on the renovations and disclosures is expected later in 2026 and may affect future Fed transparency policies.