Federal · Fortune Technology
Pirro drops Powell probe, handing Kevin Warsh a lifeline, though U.S. attorney vows to restart probe ‘should the facts warrant doing so’
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The criminal investigation that has held the Federal Reserve chair nomination hostage for three months is over—sort of.
Key facts
- The probe centered on cost overruns for the renovation of two historic Fed buildings, which ballooned from $1.9 billion in 2023 to $2.5 billion in 2025
- The decision could clear a major procedural hurdle for Kevin Warsh, President Donald Trump’s pick to replace Powell when his term as chair expires May 15
- Thom Tillis, the North Carolina Republican who sits on the Senate Banking Committee, has vowed to block Warsh’s confirmation as long as the Department of Justice probe remained open, calling
- Neither Tillis nor the Federal Reserve Board of Governors immediately responded to Fortune’ s request for comment
Summary
U.S. Attorney for the District of Columbia Jeanine Pirro announced Friday that her office is closing its probe into Fed Chair Jerome Powell and the central bank’s Washington headquarters renovation, punting the matter to the central bank’s inspector general. The decision could clear a major procedural hurdle for Kevin Warsh, President Donald Trump’s pick to replace Powell when his term as chair expires May 15. Thom Tillis, the North Carolina Republican who sits on the Senate Banking Committee, has vowed to block Warsh’s confirmation as long as the Department of Justice probe remained open, calling the investigation “weak” and “frivolous” and framing it as an assault on Fed independence. Neither Tillis nor the Federal Reserve Board of Governors immediately responded to Fortune’ s request for comment.