The Department of Justice has dropped its criminal investigation into Federal Reserve Chair Jerome Powell concerning cost overruns related to renovations at the central bank's headquarters in Washington, D.C.

DC US Attorney Jeanine Pirro announced Friday that the criminal probe would be discontinued. Instead, the Federal Reserve's inspector general has been asked to examine the building cost overruns, which sources indicate amount to billions of dollars.

The investigation had focused on the expensive renovation project at the Fed's headquarters building in the nation's capital. The Federal Reserve undertook significant renovations to its main facility, but costs reportedly escalated well beyond initial projections.

By transferring the matter to the Fed's internal inspector general, the Justice Department is shifting from a potential criminal investigation to an administrative review process. Inspector generals typically conduct oversight investigations within their respective agencies to examine waste, fraud, and abuse.

The development represents a significant change in how the matter will be handled, moving from potential criminal liability to internal administrative scrutiny. Powell, who has served as Fed Chair since 2018, will no longer face the prospect of criminal charges related to the renovation costs.