Trump Not Letting Powell Go Yet
The Trump White House made it clear Friday that Federal Reserve Chairman Jerome Powell is not out of the spotlight yet, despite the Justice Department stepping back from its investigation into massive renovation spending at the Federal Reserve.
White House Press Secretary Karoline Leavitt told reporters the case has not ended—it has simply moved to a new phase.
According to Leavitt, the Federal Reserve’s Inspector General will now continue examining billions in reported cost overruns tied to construction and renovation work at the central bank.
She said the review remains active under a different authority and Americans should expect continued oversight.
Questions Grow Over Billions in Fed Spending
The controversy centers around expensive building projects at the Federal Reserve that reportedly ran billions over budget.
Many conservatives have questioned why unelected officials at the Fed appear to face little accountability while everyday Americans deal with inflation, high prices, and expensive borrowing costs.
Leavitt’s remarks signaled the Trump administration wants answers.
Jeanine Pirro Sends Strong Warning
Earlier Friday, Jeanine Pirro announced the Justice Department had formally closed its current investigation.
But Pirro also made clear the matter is far from finished.
She said the Inspector General has been asked to closely review the spending overruns and warned that criminal investigators could reopen the case if future findings justify it.
That statement keeps serious pressure on Powell heading into a politically sensitive season.
Trump Nominee Could Now Move Forward
The development may also clear a path for President Donald Trump to install his nominee for Fed chair, Kevin Warsh.
Warsh has been waiting on Senate confirmation while some Republicans objected to the ongoing Powell probe.
Key Republican Senator Changes Course
Sen. Thom Tillis had previously refused to support any nominee while the investigation remained open.
Now that the Justice Department has stepped aside, Tillis is expected to support Warsh, giving Trump a stronger path toward reshaping the Federal Reserve.
That matters because Tillis sits on the Senate Banking Committee, where nominations can be delayed or blocked.
Trump vs Powell Battle Over Interest Rates
President Trump has repeatedly criticized Powell for refusing to cut interest rates faster.
Many Americans over 50 watching retirement accounts, mortgages, credit cards, and savings rates understand exactly why the issue matters.
High interest rates impact:
- Home loans
- Credit card debt
- Small business borrowing
- Retirement income planning
- Stock market confidence
What Happens Next?
Now Washington is watching two major questions:
- Will the Inspector General uncover deeper problems at the Fed?
- Will Trump succeed in replacing Powell with Kevin Warsh?
Either outcome could have a major impact on inflation, markets, and the future direction of the U.S. economy.
Bottom Line
Jerome Powell may have avoided one investigation, but the pressure is clearly not gone. With Trump pushing for change and Fed spending now under new scrutiny, this fight may only be getting started.
