The Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell, according to an announcement made Friday by U.S. Attorney Jeanine Pirro, as reported by the Gateway Pundit.

The decision follows months of scrutiny surrounding the Federal Reserve’s renovation project at its Washington, D.C., headquarters, which saw costs rise significantly above initial estimates. Federal investigators first opened the criminal probe into Powell in January, focusing on the escalating expenses tied to the project.

Pirro confirmed that her office has directed the investigation to be closed while oversight shifts to another federal review.

“This morning, the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers,” Pirro said.

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“The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas.”

Pirro added that the Department of Justice would defer to the inspector general’s review for further findings.

“Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.”

The Federal Reserve’s renovation project was originally approved in 2017. Initial cost projections were set at $1.9 billion in 2019. Construction began in 2021, but the total cost later increased to approximately $2.5 billion.

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According to previous reporting, the cost increase was attributed to “unforeseen conditions,” including the discovery of additional asbestos, soil contamination, and a higher-than-expected water table at the construction site.

The investigation had also drawn attention on Capitol Hill, where lawmakers questioned Powell during his semiannual monetary policy testimony. Some senators raised concerns about the scale of the renovation and characterized certain aspects of the project as excessive.

Last July, Powell had been criminally referred to the Justice Department for potential prosecution. The investigation later resulted in subpoenas issued by federal prosecutors seeking information related to the project.

However, a federal judge intervened last month. U.S. District Judge James Boasberg, an appointee of former President Barack Obama, quashed the subpoenas issued to Powell, ruling they had been improperly authorized.

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The ruling came after criticism that the subpoenas followed pressure from President Donald Trump, who had publicly urged Powell to lower interest rates.

The closure of the investigation may have implications for ongoing discussions about leadership at the Federal Reserve. The development comes as President Trump’s nominee for Fed chair, Kevin Warsh, awaits confirmation.

Sen. Thom Tillis had previously stated he would block the confirmation process until the Justice Department concluded its investigation into Powell.

With the probe now closed, the matter shifts to the Federal Reserve’s inspector general, who will conduct an independent review of the renovation project and its cost overruns.

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