Justice Department drops probe into Fed Chair Jerome Powell

Washington — Federal prosecutors are ending their criminal investigation into Federal Reserve Chairman Jerome Powell, U.S. Attorney Jeanine Pirro announced, clearing a key obstacle for the confirmation of President Trump’s pick to take over as head of the central bank’s Board of Governors.

Pirro wrote on X that the Fed’s inspector general has instead been asked to look into potential cost overruns in the central bank’s renovation of its Washington, D.C., headquarters.

“Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry,” she wrote. “Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.”

Pirro said that she expects the inspector general’s office to provide her a “comprehensive report” on its findings and said she is “confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas.”

ABC News first reported that the Justice Department is set to drop the probe.

This is a breaking news story and will be updated.