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Fri, 24 Apr 2026

Fri, 24 Apr 2026 US justice department drops probe into Fed chairman Jerome Powell

President Donald Trump had accused Powell of improper cost overruns in renovating the Fed's building.

* The US Justice Department has dropped its investigation into Federal Reserve Chairman Jerome Powell over alleged building cost overruns.
* Instead, an internal investigation led by the central bank's inspector general will be conducted.
* A statement from the White House said "American taxpayers deserve answers" about the Fed's fiscal mismanagement and that the Office of the Inspector General is best positioned to get to the bottom of it.
* The White House expressed confidence that Kevin Warsh, Trump's nominee for Fed Chairman, will be confirmed by the Senate soon.
* US Attorney Jeanine Pirro said she would restart a criminal investigation if the facts warrant it.
* The inspector general's office declined to comment on a timeline but said they are actively working to complete their review and will make the results available to the public and Congress upon completion.
* Trump had previously attacked Powell, calling him a "knucklehead" and claiming he was doing a "lousy job".
* Powell had taken the unusual step of releasing a video in January disclosing that the Justice Department had served the Fed with subpoenas and threatened a criminal indictment over testimony he gave to a Senate committee.