U.S. President Donald Trump speaks in the Oval Office of the White House on the day he announced the creation of Critical Mineral Reserves on February 2, 2026.
Evelyn HochsteinReuter
President Donald Trump said Monday that the criminal investigation into Federal Reserve Chairman Jerome Powell should continue, ignoring a pledge by Republican senators to block Trump’s selection of a replacement Fed chairman unless the investigation is halted.
President Trump told reporters in the Oval Office that Washington State Attorney Jeanine Pirro, who is leading the unprecedented investigation into the central bank chairman, “should go all the way and see what happens.”
The president was asked whether Pirro should abandon his efforts after Sen. Thom Tillis (RN.C) declared Friday that he would oppose any new Fed nominations until the Powell investigation is fully resolved.
Mr. Tillis drew that line in the sand on the same day that President Trump announced Kevin Warsh as his nominee to replace Mr. Powell as Fed chairman after a months-long audition process.
Mr. Tillis serves on the Senate Banking, Housing, and Urban Affairs Committee, which includes 13 Republicans and 11 Democrats. If Mr. Tillis sides with all the Democrats on the committee against Mr. Warsh, it could create a stalemate that would prevent the nominee from proceeding to a formal vote in the Senate.
Powell announced on January 11 that he was under criminal investigation.
The announcement came after President Trump and his allies regularly criticized Powell for months over his refusal to cut interest rates as quickly or sharply as the president wanted.
Mr. Powell accused the administration of threatening to prosecute him because, despite pressure from President Trump, the Fed is making interest rate-setting decisions “based on our best assessment of what will serve the public, rather than following the wishes of the president.”
CNBC reported Wednesday that the Fed has not yet responded to a grand jury subpoena issued as part of the Pirro investigation.
President Trump has repeatedly suggested that Powell’s incompetence or corruption played a role in the multibillion-dollar renovation of Washington’s Federal Reserve headquarters over the years.
“This is either total incompetence or some kind of theft or kickback. I don’t know what that is,” Trump said in remarks from the Oval Office on Monday.
“But Jeanine Pirro is incredible. She’ll understand that,” he added.
The Fed defended the upgrades, saying they would reduce the central bank’s costs over time, and asked for an explanation for the increased costs. Powell’s term ends in May.
