WASHINGTON — The Department of Justice has dropped its investigation of the Federal Reserve and Chair Jerome Powell over building renovation costs. U.S. Attorney for the District of Columbia Jeanine Pirro said her office closed the probe after requesting that the Federal Reserve's inspector general examine the cost overruns.

"The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas," Pirro said in a post on X. She added that she "will not hesitate to restart a criminal investigation should the facts warrant doing so."

The Trump administration had opened a criminal inquiry into Powell over a $2.5 billion renovation project at the Fed's offices. A federal judge blocked the administration's subpoenas to probe the Fed and Powell last month. Powell's term as Fed Chair expires on May 15. Trump had publicly criticized Powell and threatened to fire him if he did not lower interest rates.

The ending of the investigation removed a roadblock to former Fed Governor Kevin Warsh's confirmation as Fed Chair. Senator Thom Tillis had said he would not vote to advance Warsh's nomination unless the administration dropped its "bogus" investigation. A favorable vote by Tillis on the Senate Committee on Banking, Housing and Urban Affairs is necessary to advance the nomination.

Senator Elizabeth Warren issued a statement calling the DOJ's announcement "an attempt to clear the path for Senate Republicans to install President Trump's sock puppet Kevin Warsh as Fed Chair." Warren continued: "Let's be clear what the Justice Department announced today: they threatened to restart the bogus criminal investigation into Fed Chair Powell at any time while failing to drop their ridiculous criminal probe against Governor (Lisa) Cook. Anyone who believes Donald Trump's corrupt scheme to take over the Fed is over is fooling themselves."

Trump abruptly fired Fed Governor Lisa Cook in August over alleged financial fraud. Cook successfully challenged her firing in two lower courts, and the U.S. Supreme Court is reviewing whether Trump legally dismissed her. During an Oval Office event, Trump declined to answer a question about what he hoped to learn from the investigation into Powell and the Fed. As of 12:30 p.m. Eastern, Trump had not commented on the announcement on his Truth Social platform.