The Trump administration has dropped its criminal investigation into Federal Reserve Chair Jerome Powell, according to updated court and Justice Department filings available today. The probe, which had focused on the Fed’s $2.5 billion headquarters‑renovation project and Powell’s congressional testimony about it, was formally wound down after a federal judge earlier quashed the subpoenas and labeled the underlying inquiry as politically motivated. Open‑source records show that the Justice Department initially opened the criminal case under US Attorney Jeanine Pirro, insisting that documents and testimony from Powell and Fed officials were needed to look into possible misconduct, but the judge repeatedly found the pretext weak and the motive tainted by political pressure to push Powell into lowering interest rates.
The latest development confirms that the administration will not continue pursuing the case through appeal or new legal avenues. Powell’s camp and independent legal observers have described the move as a de‑facto end to the threat of indictment, though the Fed chairman has previously stated he would serve the full term regardless of the probe’s outcome. The episode has been widely framed as a clash over the independence of the central bank, with critics arguing that the investigation was designed to intimidate Powell rather than to address any real criminal‑law violation. With the probe now closed, the Justice Department’s energy is shifting away from the Fed chair, and the focus in Washington is turning to what nominee President Trump may put forward to succeed Powell once his term ends.