Federal Reserve Chairman Jerome Powell speaks during a news conference after the Federal Open Market Committee meeting at the Federal Reserve in Washington, DC on October 29, 2025.
Alex Wong | getty images
Kevin Wersh, nominee for Chairman of the Federal Reserve, arrives for his Senate Banking, Housing and Urban Affairs Committee confirmation hearing at the Dirksen Building on April 21, 2026.
Tom Williams | CQ-Roll Call, Inc. | getty images
Pirro said Friday that the Fed’s inspector general, an internal watchdog, had been asked to investigate cost overruns at the headquarters project, which was the alleged basis for the criminal investigation of Powell.
The Fed Chairman and others had said that the real reason for the investigation was to pressure Powell and the Fed to lower interest rates as Trump wanted.
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said in his post.
He said, “I expect a comprehensive report shortly and am confident that its findings will help resolve once and for all the questions that led this office to issue the subpoenas.”
“Accordingly, I have directed my office to close our investigation as the IG conducts this investigation,” Pirro said.
“Please note, however, that I will not hesitate to reopen a criminal investigation if I feel the need to do so based on the facts.”
White House spokesperson Kush Desai“American taxpayers deserve answers about the Federal Reserve’s fiscal mismanagement, and the more powerful officials in the Office of the Inspector General are best positioned to get to the bottom of the matter,” it said in a statement.
“The White House is as confident as ever that the Senate will ultimately confirm Kevin Warsh as the next Federal Reserve Chairman to restore competence and confidence in Fed decision-making,” Desai said.
The Federal Reserve declined to comment.
CNBC contacted Pirro’s office, Warsh and Tillis, as well as Senate Banking Committee Chairman Tim Scott, R-S.C. and requested comments from other members of that committee.
Earlier this week, Scott, R.S.C. Advocated ending the criminal investigation and turning the case over to Congress.
In a CNBC interview, Scott said it was necessary to turn over the investigation to confirm Warsh as chairman, after which information related to the project could be made available.
Scott suggested working with the House Financial Services Committee to establish “a committee that would provide permanent oversight of construction projects within the jurisdiction of the Banking Committee.”
Scott said, “Wherever that takes us, we should go. If that leads to a criminal referral, so be it.” “But give us Kevin Wersh at the Fed so we can have access to all the information we need.
Scott also said he thought Powell was “incompetent, not a criminal.”
– CNBC jeff cox, Kevin Breuninger, matt petersonAnd emily wilkins Contributed to this article.
