In a stunning development shaking Washington and Wall Street, Jeanine Pirro has appeared to drop plans to appeal the criminal probe of Fed’s Powell. The high-profile DOJ investigation into Federal Reserve Chair Jerome Powell over costly headquarters renovations has taken a dramatic turn, with the U.S. Attorney for the District of Columbia signaling an end to the legal battle that has gripped the nation’s central bank for months.
Jeanine Pirro announced Friday, April 24, 2026, that her office is closing the criminal investigation into Jerome Powell. The move comes after a federal judge quashed DOJ subpoenas earlier this year, ruling there was essentially zero evidence of wrongdoing. Pirro had initially vowed to fight the decision and appeal the ruling by District of Columbia Chief Judge James Boasberg. But fresh reports now suggest she is stepping back from that aggressive stance, handing the matter instead to the Federal Reserve’s internal inspector general for a review of the multibillion-dollar building project.
The probe centered on allegations that Powell may have misled Congress during testimony about massive cost overruns at the Fed’s Washington, D.C., headquarters renovation — a project ballooning toward $2.5 billion. Critics, including the Trump administration, had long questioned the spending and Powell’s handling of it. Yet after months of subpoenas, court battles, and intense political scrutiny, Pirro stated she would not pursue further criminal action at this time.
“I have directed my office to close our investigation as the IG undertakes this inquiry,” Pirro posted on X. She added a notable caveat: “Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.” That language leaves the door cracked open while effectively halting the immediate legal pressure on Powell.
The decision removes a major cloud hanging over the Federal Reserve at a critical moment. President Donald Trump’s nominee to succeed Powell as chair, Kevin Warsh, had faced delays in Senate confirmation partly because of the ongoing probe. Republican Sen. Thom Tillis of North Carolina had even threatened to block the nomination unless the Justice Department dropped the case. With the investigation now closed, Warsh’s path forward looks significantly clearer.
Financial markets reacted with relief. Investors have worried that prolonged uncertainty at the Fed could complicate monetary policy decisions, especially amid ongoing debates over interest rates. Powell has repeatedly pushed back against political interference, emphasizing the central bank’s independence. The abrupt wind-down of the probe eases those concerns and signals a potential de-escalation in tensions between the executive branch and America’s central bank.
Public reactions have been swift and divided. Supporters of the Trump administration hailed the move as a pragmatic step that refocuses accountability on the renovation costs without dragging the Fed into endless litigation. “This puts taxpayers first while letting the IG do its job,” one senior GOP aide told reporters. On the other side, critics called the entire episode a politically motivated attack designed to pressure Powell into faster rate cuts — a claim Powell himself raised in a rare public video statement earlier this year.
For everyday Americans, the stakes are real. The Federal Reserve’s decisions directly affect mortgage rates, car loans, credit card interest, and retirement savings. Any perception of instability at the top of the Fed can ripple through the economy, influencing everything from homebuying power to job market confidence. With inflation still a lingering worry and growth uneven across regions, stability at the central bank matters more than ever to families and businesses coast to coast.
Legal experts note the unusual nature of the case from the start. Grand jury subpoenas targeting a sitting Fed chair are rare, and the judge’s sharp rebuke — pointing out the lack of evidence — underscored concerns about prosecutorial overreach. By appearing to drop appeal plans, Pirro avoids what could have been a lengthy and uncertain fight in higher courts, one that might have further politicized the independent institution.
Even as the criminal probe winds down, the broader conversation about Fed transparency continues. The inspector general’s review will examine the renovation project in detail, ensuring oversight without the drama of criminal charges. Powell has indicated he plans to remain on the Fed Board after his term as chair ends, maintaining continuity during the leadership transition.
This latest twist highlights the high-wire balance between accountability and institutional independence in U.S. governance. While the immediate threat to Powell has eased, the episode serves as a reminder of how quickly political winds can shift in the nation’s capital — and how those shifts can influence the financial decisions that touch every American wallet.
Jeanine Pirro, Jerome Powell, the criminal probe of Fed’s Powell, the Federal Reserve investigation, and DOJ appeal plans remain hot topics as markets watch closely for any further moves from the U.S. Attorney’s office or Capitol Hill.
Mark Smith is a seasoned political and financial journalist with over 15 years covering Washington policy and economic news.
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