Is there a new development in the DOJ investigation of Powell? The chief prosecutor has been replaced

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 into Federal Reserve Chair Jerome Powell has been replaced. This change could indicate a significant development in this high-profile investigation. U.S. Senator Tim Scott told the media, “I believe the chief prosecutor has been replaced. I believe that is a fact.”

Previously, Powell stated that the U.S. Department of Justice issued a subpoena to the Federal Reserve in January of this year and threatened possible criminal charges. The subpoena relates to the ongoing $2.5 billion renovation of the Fed’s Washington headquarters and Powell’s testimony before the Senate Banking Committee last year regarding the project.

In a strongly worded video response, Powell said the investigation’s motive is the Fed’s refusal to set interest rate policies according to the preferences of former President Donald Trump.

On July 24, 2025, Trump, Senator Tim Scott, and Powell visited the Fed headquarters renovation project and made a statement.

The investigation is led by the U.S. Attorney’s Office for the District of Columbia, headed by Jeanine Pirro. However, Scott did not specify who he meant by “chief prosecutor” nor explain why this change was made.

This investigation into Powell also casts a shadow over the prospects of former Fed Governor Kevin Warsh, who has been nominated to succeed Powell as Fed Chair. Trump has chosen Warsh, and Powell’s term as Fed Chair will expire in May. According to procedure, Fed nominees must first be reviewed by the Senate Banking Committee.

As a member of the same committee, North Carolina Republican Senator Thom Tillis has repeatedly stated that he will block any Fed personnel nominations as long as the Department of Justice’s investigation into Powell is ongoing. He reiterated this stance again this Tuesday.

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