DOJ hands off Jerome Powell investigation to Federal Reserve Inspector General – One America News Network

OAN Staff Katherine Mosack
11:35 AM – Friday, April 24, 2026

The Department of Justice (DOJ) has officially closed its criminal investigation into Federal Reserve Chair Jerome Powell. U.S. Attorney for the District of Columbia Jeanine Pirro announced that her office is ending its probe into the Fed’s $2.5 billion building renovation project.

Oversight of the matter has since been shifted to Federal Reserve Inspector General Michael E. Horowitz, who has been asked to scrutinize the cost overruns.

“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,” Pirro wrote. “The IG has the authority to hold the Federal Reserve accountable to American taxpayers.  I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas.”

“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.”

 

Powell had testified before Congress about the Federal Reserve’s headquarters renovation project in June, when he denied that certain “luxury” features were driving up costs.

In July, Representative Anna Paulina Luna (R-Fla.) submitted a criminal to the DOJ accusing Powell of perjury and making false statements about the $2.5 billion renovation project. The investigation was formally opened in November, with grand jury subpoenas issued in January.

Chief U.S. District Judge James Boasberg, an Obama appointee who has served on the D.C. District Court since 2011, rebuked the DOJ’s efforts during a closed-door hearing in March. In a ruling, Boasberg slammed government subpoenas, stating that prosecutors had produced “essentially zero evidence” of any criminal conduct by Powell.

The judge further suggested that the investigation appeared to be a pretextual attempt to exert pressure on the Federal Reserve Chair rather than a legitimate pursuit of justice.

Nonetheless, on Friday, White House Press Secretary Karoline Leavitt clarified that the investigation may resume at any moment if necessary, as it has not been fully disregarded.

“U.S. Attorney Jeanine … put out a statement saying that the case is not necessarily dropped, it’s just being moved over to the inspector general who has critical tools at their disposal to continue to look into the financial mismanagement at the Fed,” she told reporters.

“This has obviously been a priority for the president. If you drive by the Fed building, the president has a point. This is a project that’s been going on for a very long time, it’s costing taxpayers billions of dollars, and I think it’s in the best interest of the taxpayer to get to the bottom of it. So, the investigation still continues, it’s just under a different authority, and that’s what you’ll continue to see.”