The Justice Department has ended its criminal investigation into Federal Reserve Chair Jerome Powell, removing a significant obstacle to the confirmation of President Donald Trump’s nominee to succeed him. U.S. Attorney for the District of Columbia Jeannine Pirro announced on Friday that her office would close the probe into the Fed’s $2.5 billion building renovations, citing the Federal Reserve’s independent inspector general as the proper authority to review the project’s cost overruns. Pirro noted, however, that the investigation could be reopened if new evidence of wrongdoing emerges.

The inquiry, which began last year, focused on whether Powell made false statements to Congress during testimony about the extensive renovation of the Fed’s headquarters overlooking the National Mall, where costs significantly exceeded initial estimates. While the project’s cost overruns had drawn criticism, including from Trump, prosecutors conceded they had found no evidence of a crime. A federal judge had previously criticized the Justice Department’s subpoenas related to the investigation as lacking substantial justification.

Powell has denied any misconduct, characterizing the investigation as an effort to undermine the Federal Reserve’s independence amid political tensions over monetary policy. The probe coincided with growing pressure from Trump, who repeatedly advocated for lower interest rates—specifically a reduction from about 3.6% to 1%—a move not supported by Fed officials. Powell and other policymakers have maintained that interest rates should be set based on economic conditions rather than political preferences.

The Justice Department’s decision to drop the investigation could clear the way for the Senate confirmation of Kevin Warsh, a former Fed governor and Trump’s nominee to lead the central bank after Powell’s term expires on May 15. Warsh faced bipartisan scrutiny during his recent Senate Banking Committee hearing. Republicans defended his nomination, while Democrats raised concerns about his independence from the administration, transparency regarding his financial holdings, and perceived inconsistency on interest rate policies. Warsh clarified that he never promised the White House to enact particular interest rate cuts, despite President Trump’s repeated calls for such actions.

Senator Thom Tillis of North Carolina, a key Republican senator who had withheld support for Warsh pending the resolution of the investigation, has not yet commented on Pirro’s announcement. The termination of the probe may facilitate a smoother confirmation process and avoid potential conflict at the Federal Reserve.

With Powell’s term as chair ending mid-May but his position as a Fed governor extending through 2028, he has expressed his intention to remain on the board until the investigation reaches a transparent conclusion. The Fed has yet to issue a formal statement on the Justice Department’s decision. Meanwhile, the inspector general’s ongoing review of the renovation project will continue to scrutinize the Federal Reserve’s spending on the building upgrades.