In an X social media post on 24/4, Pirro explained that she had directed her office to close the investigation. This decision came as the Fed's Inspector General, an internal oversight body, had been asked to investigate cost overruns at the headquarters renovation project, which was the original basis for the criminal investigation into Powell.
"I have directed my office to close the investigation, as the Inspector General is reviewing this matter," Pirro stated, adding that she expects "a comprehensive report shortly." Pirro emphasized the Inspector General's responsibility, writing, "The Inspector General has a duty to hold the Fed accountable to the American people." She also affirmed her readiness to "not hesitate to reopen another investigation if circumstances warrant it."
The US Department of Justice's cancellation of the criminal investigation into Powell has removed a major obstacle to the confirmation of Kevin Warsh, who was nominated by US President Donald Trump to be the next Fed Chair.
Senator Thom Tillis had consistently stated he would block Warsh's confirmation until the federal criminal investigation involving Powell was resolved. Tillis is also a member of the US Senate Banking Committee.
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US Federal Reserve (Fed) Chair Jerome Powell during a press conference in 9/2025. Photo: Reuters |
On 11/1, US Federal Reserve (Fed) Chair Jerome Powell confirmed that federal prosecutors had opened a criminal investigation into him. "The subject of that inquiry was in part about a multi-year renovation project for Fed office buildings," Powell stated in a video posted on the Fed's X account.
However, Powell suggested that the prosecutors' investigation stemmed from the Fed setting interest rates "based on its best judgment for what is good for the public, rather than following the wishes of US President Donald Trump." For over one year, President Trump had repeatedly criticized the Fed and Powell for not lowering interest rates as quickly and aggressively as he demanded. Regarding the Fed headquarters renovation project, he also criticized Powell's "terrible" management, claiming it cost "3 billion USD for work that should have only cost 50 million USD."
Just two days prior to the cancellation announcement, Pirro had pledged to continue the investigation, despite the process being hindered after a federal judge rejected her office's request for documents from the Fed regarding the headquarters renovation project.
Warsh had a hearing before the US Senate on 21/4.
By Ha Thu (according to Reuters, CNBC)
