DOJ drops criminal probe of Federal Reserve Chair Powell
Probe dropped with no charges, Warsh confirmation path cleared
On April 24, 2026, U.S. Attorney Jeanine Pirro announced the DOJ was dropping its criminal investigation into Federal Reserve Chair Jerome Powell. One day earlier, a federal prosecutor admitted in court that the office 'didn't have evidence of any crimes.' The investigation examined renovation cost overruns at the Fed's Washington headquarters.
Key People
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Jeanine Pirro
U.S. Attorney for Washington D.C.
Pirro, a registered Republican and longtime Trump ally, announced the closure of the criminal investigation into Powell. Her decision to drop the probe despite earlier admissions of lack of evidence raises questions about whether the probe was driven by law enforcement merit or political pressure from the Trump administration.
Jerome Powell
Federal Reserve Chair
Powell was the subject of the criminal investigation into renovation cost overruns at Fed headquarters. The investigation served as leverage to pressure him; its closure clears the path for his replacement by Trump's nominee, Kevin Warsh, when his term expires in May 2026.
Kevin Warsh
Trump's nominee for Federal Reserve Chair
Warsh served as a Federal Reserve governor from 2006 to 2011 and has written that the Fed should be more responsive to 'market signals.' His Senate confirmation has been held up by Tillis contingent on the Powell probe being dropped; with the probe closed, the path to his confirmation as Powell's replacement is now clear.
TT
Thom Tillis
U.S. Senator (R-NC)
Tillis placed a hold on Warsh's nomination to Federal Reserve Chair explicitly contingent on the Powell criminal probe being dropped. This directly tied Senate confirmation authority to law enforcement action, making the DOJ's prosecutorial decisions contingent on a political confirmation outcome.
Jeanine Pirro
U.S. Attorney for the District of Columbia
Pirro announced the decision to drop the criminal investigation into Fed Chair Powell. She stated federal prosecutors lacked evidence of crimes and transferred the matter to the Fed's Inspector General. Her decision removed the procedural obstacle to Kevin Warsh's Senate confirmation.
Claims & Perspectives
True
True
The federal prosecutor admitted the DOJ 'didn't have evidence of any crimes' before dropping the investigation.
Multiple news reports confirm that on April 23, 2026, a federal prosecutor told Chief Judge James Boasberg during a court hearing that the office 'didn't have evidence of any crimes.' This admission came one day before Pirro announced the investigation was being dropped.
True
Judge James Boasberg stated there was 'no evidence of any crime other than displeasing the President.'
Judge Boasberg quashed the DOJ's investigative subpoenas in March 2026, explicitly stating that there was 'no evidence of any crime other than displeasing the President.' This language directly indicates the investigation appeared politically motivated rather than evidence-based.
True
Senator Thom Tillis placed a hold on Kevin Warsh's confirmation explicitly contingent on the Powell probe being dropped.
Tillis's office confirmed the hold was explicitly tied to the closure of the Powell investigation. This directly connects Senate confirmation authority to prosecutorial decisions, making law enforcement contingent on a political outcome.
True
Kevin Warsh has written that the Federal Reserve should be more responsive to 'market signals.'
Warsh, a fellow at the American Enterprise Institute, has published extensively on Fed policy. His writings indicate preference for a Fed more responsive to market conditions and less focused on employment mandates, differentiating him from Powell's independent approach.
True
Federal Reserve independence is foundational to sound monetary policy and insulates the Fed from political pressure.
The Federal Reserve Act explicitly establishes the Fed's independence from executive control. Economists across the political spectrum agree that independence allows the Fed to make unpopular decisions (like raising interest rates to fight inflation) without political retaliation.
True
Jerome Powell's term as Federal Reserve Chair expires in May 2026.
Powell's term expires in May 2026, making April 2026 the critical window for his replacement. This timing aligns with Trump's ability to nominate a successor, giving context to why clearing confirmation obstacles in April was strategically important.
True
Criminal investigation of federal officials should be based on evidence of actual crimes, not political goals.
This is a foundational principle of rule of law and prosecutorial ethics. Investigations should be launched when evidence suggests a crime occurred, not launched for political leverage and continued despite lack of evidence.
Disputed
Disputed
The investigation into Powell was launched under Trump administration pressure to force Powell's replacement.
While Trump has publicly criticized Powell's interest rate decisions, the DOJ has not acknowledged launching the investigation specifically to force his replacement. However, the timing (launched after Trump's return to office), the admission of lack of evidence, and the closure tied to Warsh confirmation all suggest political motivation.
What you can do
Contact your representatives about Federal Reserve independence safeguards
civic action
Federal Reserve independence is foundational to sound monetary policy. When criminal investigations are used as political leverage to influence Fed leadership, that independence is threatened. Congress should consider safeguards—such as restrictions on using law enforcement to pressure independent agencies—to protect institutional autonomy.
Attend a town hall to discuss judicial independence and prosecutorial standards
civic action
Prosecutorial decisions must be based on evidence, not political goals. When the DOJ continues investigating despite lack of evidence—and then drops the probe once leverage is achieved—public confidence in law enforcement erodes. Engage with local civic organizations to discuss what accountability mechanisms exist.
Support media outlets covering prosecutorial accountability and Fed independence
civic action
Investigative journalism plays a crucial role in exposing when law enforcement is weaponized for political purposes. Support outlets that follow prosecutorial decisions and institutional independence issues with rigor. Subscribe, donate, or share reporting that holds power accountable.
Monitor Federal Reserve leadership and independence in the next Congress
civic action
The Federal Reserve's institutional independence is critical for sound monetary policy. When the path to replacing a Fed Chair is cleared through dropped criminal investigations tied to Senate confirmation holds, that independence is threatened. Stay informed about Fed leadership, monetary policy decisions, and whether they reflect economic evidence or political pressure.