GOP Senator Says Prosecutor in Powell Probe Has Been Changed (2)

The top Republican on the Senate Banking Committee said the “head prosecutor” handling the Department of Justice’s criminal investigation into Federal Reserve Chair Jerome Powell had been replaced, a potentially notable shift in the highly consequential probe.

“I believe that the head prosecutor has been changed,” Senator Tim Scott said Wednesday during an appearance on CNBC. “I think that’s a fact.”

DOJ issued subpoenas to the Fed in January threatening a criminal indictment, Powell said at the time. The subpoenas are related to the Fed’s ongoing $2.5 billion renovation of its headquarters in Washington and testimony Powell provided about the construction before the Senate Banking panel last year. Powell, in an unusually forceful video response to the subpoenas, characterized the investigation as motivated by the Fed refusing to set interest rates according to the preferences of President Donald Trump.

President Trump delivers remarks alongside Senator Tim Scott, left, and Fed Chair Powell as they toured the Federal Reserve’s renovation project on July 24, 2025.

Photographer: Chip Somodevilla/Getty Images

The investigation is being run by the US Attorney’s Office for the District of Columbia, which is led by Jeanine Pirro. Scott didn’t make clear who he was referring to as “head prosecutor” or why any change had been made.

The probe has muddied the prospects for the nomination of Kevin Warsh, the former Fed Governor Trump has selected to replace Powell, whose chair term expires in May. Nominees for the Fed are first vetted by the Senate Banking Committee.

North Carolina Republican Thom Tillis, another member of that panel, has vowed to block any Fed nominations as long as the DOJ investigation of Powell remains unresolved. Tillis reiterated that commitment on Tuesday.

In a social media post Wednesday, Tillis said he was “awaiting further clarification” from the DC District Court regarding the case.

“I hope the DOJ moves quickly to conclude the investigation of Chairman Powell so that we can confirm Kevin Warsh to this critical role by May,” he added.

Without Tillis’ support, any nomination would likely have difficulty advancing to a vote before the full Senate, given the committee’s close split between Republicans and Democrats.

Scott on Wednesday also said the Fed had declined to have Powell appear before the committee for semiannual testimony that is required by law. Scott said the hearing had been scheduled for Feb. 11.

“They declined to come. We could compel them to come. At this point, he is more concerned about the criminal proceeding, and I get that,” Scott said, referring to Powell.

The Fed and Pirro’s office each declined to comment. Scott’s office didn’t respond to a request for additional comment.

Scott has said Powell was unprepared for his testimony last year about the renovation project, but that he didn’t commit a crime during the hearing.

Several lawmakers have come to Powell’s defense since his revelation of the DOJ probe. Powell’s public calendar for January shows he held about a dozen calls with lawmakers, including Scott, after the subpoenas were issued.

(Updates with no comment from Pirro’s office in 12th paragraph.)

--With assistance from Chris Strohm.

To contact the reporter on this story:
Amara Omeokwe in Washington at aomeokwe@bloomberg.net

To contact the editors responsible for this story:
Christopher Condon at ccondon4@bloomberg.net

Ben Bain

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