US Justice Department drops criminal probe of Federal Reserve chair Jerome Powell

The US Department of Justice (DOJ) has ended its probe into Federal Reserve chair Jerome Powell, a move that could pave the way for the confirmation of his successor, Kevin Warsh.

According to US Attorney for the District of Columbia Jeannine Pirro, her office was ending its probe into the Fed’s extensive building renovations because the Fed’s inspector general would scrutinize them instead.

The investigation has been a sticking point in the transfer of leadership at the Fed as Powell's term comes to an end in nearly three weeks.

According to The Associated Press, a prosecutor handling the case conceded at a closed-door court hearing in March that the government hadn’t yet found any evidence of a crime, and a judge subsequently quashed subpoenas issued to the Federal Reserve.

The judge, James Boasberg, said prosecutors had produced “essentially zero evidence” to suspect Powell of a crime. Boasberg prosecutors’ justification for the subpoenas as “thin and unsubstantiated.”

Trump vs Powell

Trump, who appointed Powell during his first term in office, had frequently clashed with the Federal Reserve Chair during his second term and demanded his immediate resignation.

Trump has repeatedly pressured Powell to aggressively cut interest rates to stimulate economic growth and reduce federal borrowing costs, which the latter has repeatedly refused.

Trump, who in April 2025 said Powell "termination cannot come fast enough,” has frequently threatened to fire Powell, even as legal scholars argue the president lacks the authority to remove a Fed Chair without "cause."

Despite growing pressure from Trump, Powell also refused to give in to his demand and insisted on completing his term in office, which comes to an end on May 15.

Senate confirmation of Kevin Warsh

In January, Trump announced his intention to nominate former Fed Governor Kevin Warsh to succeed Powell as Chair of the Federal Reserve. Trump revealed the choice after a White House meeting, stating he wanted a leader focused on lower interest rates.

However, his confirmation vote by the Senate has been delayed after Sen. Thom Tillis, a North Carolina Republican, said he would oppose Warsh until the investigation was resolved, effectively blocking his confirmation.

DOJ probe into Trump adversaries

The decision to end the investigation against Powell is the latest in a series of legal setbacks for the Justice Department against the perceived adversaries of Trump.

This includes the Justice Department probes into former FBI Director James Comey, New York Attorney General Letitia James and former CIA Director John Brennan, among others.

Most of these charges have been thrown out by the courts, or investigations have been stalled.