President Trump and Federal Reserve Chair Jerome Powell tour the Fed's $2.5 billion headquarters renovation project on July 24, 2025. Chip Somodevilla/Getty Images hide caption

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Chip Somodevilla/Getty Images

The U.S. Justice Department is dropping its criminal investigation of Federal Reserve Chair Jerome Powell, paving the way for the Senate to confirm Kevin Warsh, the president's nominee to head the central bank .

The decision marks a reversal for Jeanine Pirro, the U.S. attorney for the District of Columbia, who had vowed to continue the probe into cost overruns during the renovation of two Fed buildings, even after a judge had blocked the investigation.

Pirro said she would instead ask the Fed's inspector general to look into the cost overruns, which have risen from $1.9 billion to $2.5 billion in recent years.…