U.S. Attorney for the District of Columbia Jeanine Pirro announced Friday morning that her office is ending its investigation into the Federal Reserve and Chair Jerome Powell over the agency's costly headquarters renovation. The decision removes a key obstacle to the confirmation of Kevin Warsh, widely expected to succeed Powell.
Pirro said her office has instead asked the Fed's inspector general to review the building cost overruns—which she described as in the billions of dollars—borne by taxpayers. The move signals a shift in enforcement strategy, handing oversight to internal auditors rather than federal prosecutors.
The development comes as the Senate prepares to consider Warsh's nomination. The Fed probe had been seen as a potential stumbling block, with some Democrats raising concerns about accountability. Pirro's decision could accelerate the confirmation timeline.
Separately, Defense Secretary Pete Hegseth and Joint Chiefs of Staff Chair Gen. Dan Caine provided a brief update Friday on the conflict in Iran, three days after President Trump indefinitely extended a ceasefire. Hegseth reported that 34 Iranian ships have been turned back since the U.S. naval blockade took effect. He did not dispute a Washington Post report that clearing mines laid by Iranian forces in the Strait of Hormuz could take up to six months.
The standoff has evolved into a tit-for-tat exchange of gunboat diplomacy, with both sides maintaining a double blockade. The Strait of Hormuz remains a critical chokepoint for global oil shipments, and the mine threat has raised concerns about energy prices and supply chains. The administration has not indicated whether it will seek additional congressional authorization for operations in the region.
President Trump is scheduled to travel to his Mar-a-Lago resort in Florida on Friday to attend the Republican National Committee's spring retreat. The trip comes amid a busy news cycle, with the Fed probe closure and Iran developments dominating headlines. Trump is expected to address donors and party leaders at the retreat.
The Fed investigation had been a point of contention on Capitol Hill. Some lawmakers had questioned whether the probe was politically motivated, while others argued that the cost overruns warranted scrutiny. Pirro's decision to refer the matter to the inspector general may satisfy both camps, though it leaves the final report in the hands of internal auditors.
In related political news, House Oversight Democrats are accusing Republicans of stalling the Epstein investigation by canceling formal hearings, while Senate Democrats are demanding a probe into the FAA chief's stock profit.
The Iran ceasefire extension has provided a temporary lull in hostilities, but the Pentagon's acknowledgment of a potential six-month mine-clearing operation suggests that the military timeline could stretch well beyond the current truce. Hegseth did not provide a specific end date for the blockade or a timeline for de-escalation.
As the administration juggles these multiple fronts, the political landscape remains fluid. The Fed probe's closure removes one uncertainty, but the Iran situation continues to pose risks—both military and economic. Trump's Florida retreat will likely serve as a venue for rallying Republican support ahead of what promises to be a contentious spring.
