Why Did the DOJ Stop Investigating Jerome Powell?

The Department of Justice (DOJ) closed its investigation into Federal Reserve Chair Jerome Powell, according to an announcement on Friday.

For Context: The US Attorney for the District of Columbia (USADC) launched the investigation in January on whether Powell was truthful in his June 2025 congressional testimony about renovations on the Federal Reserve Headquarters in DC. Powell said in defense, "This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President." Two Republican senators joined in Powell's criticism of the investigation. 

Key Quote: "This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers," stated USADC Judge Jeanine Pirro on Friday. "Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so."

How The Media Covered It: News media across the political spectrum framed the investigation's closing as a way for the DOJ to clear a path for Kevin Warsh, whom Trump nominated to replace Powell in January. If the Senate confirms Warsh's nomination, he will take over once Powell's term expires in May. Outlets on the left often highlighted potential drawbacks within the Senate had the DOJ not closed the investigation. ABC News (Lean Left bias), for example, said the investigation "threatened to delay the confirmation of Powell's successor."

Written by the AllSides staff (of humans). Learn more. Support our mission. Suggest an improvement to this summary.