Is there a turning point in the U.S. Department of Justice's investigation into Powell? The Chief Prosecutor has been replaced
The top Republican on the U.S. Senate Banking Committee stated that the "chief prosecutor" responsible for the criminal investigation of Federal Reserve Chairman Jerome Powell by the U.S. Department of Justice has been replaced, a change that may indicate significant developments in this impactful investigation. Thom Tillis, a Republican senator from North Carolina and a member of the committee, has repeatedly stated that he will block any Federal Reserve personnel nominations as long as the Department of Justice's investigation into Powell is ongoing
On Wednesday, according to media reports, the highest-ranking Republican on the U.S. Senate Banking Committee stated that the "chief prosecutor" responsible for the criminal investigation of Federal Reserve Chairman Jerome Powell by the U.S. Department of Justice has been replaced, a change that may indicate significant developments in this impactful investigation. U.S. Senator Tim Scott said in a media interview on Wednesday, "I believe the chief prosecutor has been replaced. I think that is a fact."
Powell previously stated that the U.S. Department of Justice issued a subpoena to the Federal Reserve in January of this year and threatened potential criminal charges. The subpoena pertains to the ongoing $2.5 billion renovation project at the Federal Reserve's Washington headquarters, as well as Powell's testimony before the Senate Banking Committee regarding the construction project last year.
In a video response with unusually strong language, Powell claimed that the motivation behind the investigation was the Federal Reserve's refusal to set interest rate policy according to the preferences of U.S. President Donald Trump.
On July 24, 2025, Trump toured the Federal Reserve headquarters renovation project and spoke alongside Senator Tim Scott and Powell.
The investigation is being handled by the U.S. Attorney's Office for the District of Columbia, led by Jeanine Pirro. However, Scott did not specify who he was referring to as the "chief prosecutor" nor did he explain why this change occurred.
This investigation into Powell also casts a shadow over the prospects of former Federal Reserve Governor Kevin Walsh being nominated as the next Federal Reserve Chairman. Trump has chosen Walsh to succeed Powell, whose term as Federal Reserve Chairman will expire in May. According to procedure, Federal Reserve nominees must first undergo scrutiny by the Senate Banking Committee.
North Carolina Republican Senator Thom Tillis, also a member of the committee, has repeatedly stated that he will block any Federal Reserve personnel nominations as long as the U.S. Department of Justice's investigation into Powell is ongoing. Tillis reiterated this position again on Tuesday.
