The U.S. Department of Justice has officially closed its investigation into Federal Reserve Chair Jerome Powell, shifting the focus to strengthened oversight through the central bank’s Inspector General. The move underscores the government’s commitment to transparency while ensuring proper institutional accountability.

U.S. Attorney Jeanine Pirro confirmed the decision, emphasizing that federal authorities remain vigilant and prepared to act if new evidence arises. At the same time, the Inspector General—equipped with broader auditing authority—will continue reviewing the Federal Reserve’s multibillion-dollar renovation project.

The development removes uncertainty surrounding the Federal Reserve and clears the path for President Donald Trump’s nominee, Kevin Warsh, to advance toward Senate confirmation. Lawmakers who had previously questioned the investigation now view the decision as a necessary step to restore confidence and stability in economic leadership.

The review centers on rising renovation costs at the Federal Reserve’s historic Washington headquarters. Officials have attributed the increase to inflation, material costs, and unforeseen construction challenges, while federal oversight ensures taxpayer interests remain protected.

The White House reiterated its position that Americans deserve full transparency and responsible fiscal management, while expressing confidence that new leadership at the Federal Reserve will strengthen decision-making and economic direction.

With the investigation closed and oversight continuing, the administration signals a dual approach: enforcing accountability while maintaining institutional stability — a balance seen as critical for economic confidence moving forward.