Criminal Investigation into Powell Halted to Smooth Trump's Choice?

The US Department of Justice has decided to halt the criminal investigation into Federal Reserve Chair Jerome Powell, on Friday (24 April 2026). This decision was announced by the Highest Federal Prosecutor for the District of Columbia, Jeanine Pirro, via a post on social media platform X. In the post, she emphasised that she would not hesitate to reopen the criminal investigation into the head of the US central bank. Pirro revealed that the Federal Reserve’s Inspector General (OIG) has been requested to investigate allegations of cost inflation in the construction-renovation of the Fed’s office in Washington. She stated that the renovation served as the basis for the investigation into Powell. “I have instructed my office to close our investigation while the Inspector General conducts this probe. However, it should be noted that I will not hesitate to restart the criminal investigation if the facts justify it,” Pirro wrote in the post, as quoted from CNBC International on Saturday (25 April 2026). According to CNBC International, the Department of Justice’s decision is said to open a wide path for Kevin Warsh. Warsh is touted to replace Powell and is a figure chosen by US President Donald Trump. He has undergone confirmation hearings in the US Senate as the new Fed Chair candidate. He affirmed that the Fed would remain independent from the White House if selected. It is mentioned that the US Senate delayed a full vote on Warsh unless the criminal investigation concludes. “The Inspector General has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro wrote. “I expect a comprehensive report in a short time and am confident that the results will help resolve, once and for all, the questions that led this office to issue a subpoena,” she added. Further reported, Pirro stated that the investigation was conducted to pressure Powell and the Fed into lowering interest rates as desired by Trump. There has been no official comment from the Fed, Pirro, or Warsh regarding this matter.