On Friday morning, the U.S. Attorney for the District of Columbia, Jeanine Pirro, announced a change of course in the ongoing investigation into cost overruns in the refurbishing of the Federal Reserve building. The matter will now be referred to the Office of the Inspector General for the Fed.
This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers.
— US Attorney Pirro (@USAttyPirro) April 24, 2026
The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I…
The post reads in full:
This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers.
The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas.
Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.
The Office of the Inspector General (OIG) does have law enforcement powers, according to its website.
The OIG’s Office of Investigations conducts investigations, which are different from audits and evaluations. Our investigations are carried out under the authority of the Inspector General Act of 1978, as amended, which established the OIG as an independent oversight entity to combat waste, fraud, and abuse relating to the programs and operations of the Board and the CFPB. Our investigations are carried out by federal criminal investigators (Special Agents), whose law enforcement powers have been granted by the U.S. Attorney General. The U.S. Attorney General vests our Special Agents with the authority to carry firearms, seek and execute search and arrest warrants, and make arrests without a warrant in certain circumstances.
It's a change of course, but this doesn't appear to take any heat off the Fed — at first glance.
Read More: Trump Targets Federal Reserve Renovation With Lawsuit Threat
Pirro Fires Back: Fed Probe 'Totally Avoidable' If Powell Had Responded
There's a catch (there's always a catch): The OIG has already investigated this issue and reported no findings of wrongdoing. But it may well clear the way to allow President Trump's chosen replacement to take the top spot at the Fed:
The inspector general for the Federal Reserve has already reviewed the project twice, and found no wrongdoing. It was asked again to review the project in 2025 by Powell, amid unrelenting pressure from President Donald Trump and his top allies.
The decision clears the way for Trump's nominee to chair the Fed, Kevin Warsh, to advance toward a confirmation vote in the Senate.
Warsh's confirmation has been blocked by Sen. Thom Tillis due to what the Republican from North Carolina called a "bogus" investigation of Powell.
That's an interesting twist, and may well be a part of the reason for the change in course. Given the previous investigations, it doesn't seem likely that the OIG for the Fed will find any wrongdoing in yet another investigation, but this appears to clear the way for President Trump to replace Jerome Powell, with whom the president has not been happy.
This thing likely isn't over yet. Stay tuned.
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