On Wednesday, media reports indicated that the top Republican on the U.S. Senate Banking Committee stated the "lead prosecutor" overseeing the Justice Department's criminal investigation into Federal Reserve Chair Jerome Powell has been replaced. This change may signal a significant development in the high-stakes inquiry. Senator Tim Scott said in an interview, "I believe the lead prosecutor has been changed. I think that is the case."

Powell previously disclosed that the Justice Department served the Fed with a subpoena in January, threatening potential criminal charges. The subpoena relates to the Fed's ongoing $2.5 billion renovation of its Washington headquarters and Powell's testimony before the Senate Banking Committee last year concerning the project.

In an unusually forceful video statement, Powell suggested the investigation was motivated by the Fed's refusal to set interest rates according to the preferences of former President Donald Trump.

On July 24, 2025, Trump visited the Fed's renovation site with Senator Tim Scott and Powell, where he delivered remarks.

The probe is being handled by the Washington D.C. U.S. Attorney's Office, led by Jeanine Pirro. However, Scott did not specify which "lead prosecutor" he was referring to or explain the reason for the replacement.

The investigation into Powell has also cast uncertainty over the nomination prospects of former Fed Governor Kevin Warsh as Fed chair. Trump has selected Warsh to succeed Powell, whose term expires in May. Under standard procedure, Fed nominees must first be reviewed by the Senate Banking Committee.

Senator Thom Tillis, a Republican from North Carolina who also sits on the committee, has repeatedly stated he will block any Fed nominations until the Justice Department's investigation into Powell is concluded. Tillis reaffirmed this position again on Tuesday.