U.S. Department of Justice's investigation into Powell takes a turn? Chief prosecutor has been replaced.

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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 Chair Jerome Powell at the Department of Justice has been replaced, and this change may signal a significant development in this impactful investigation. U.S. Senator Tim Scott said in an interview on Wednesday, "I believe the chief prosecutor has been replaced. I believe that's the fact."

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

In a video response with unusually strong wording, Powell claimed the motivation behind this investigation is that the Federal Reserve refused to set interest rate policy according to President Trump’s preferences.

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

This investigation is being handled by the U.S. Attorney's Office for the District of Columbia, led by Jeanine Pirro. However, Scott did not clarify who he referred to as the "chief prosecutor," nor did he explain the reason for the change.

The investigation into Powell has also cast a shadow over the prospect of former Fed Governor Kevin Warsh’s nomination for Fed Chair. Trump has chosen Warsh to replace Powell, whose term as Fed Chair will end in May. By procedure, Fed nominees must first undergo review by the Senate Banking Committee.

Thom Tillis, a Republican Senator from North Carolina and fellow committee member, has repeatedly stated that as long as the Department of Justice’s investigation into Powell continues, he will block any Fed personnel nominations. Tillis reiterated this stance again on Tuesday.

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