California – The Justice Department’s decision to drop its criminal investigation into Federal Reserve Chair Jerome Powell quickly became more than a legal development.
It turned into another political flashpoint, this time centered on California Senator Alex Padilla and the fierce reaction he received after posting about the matter on X.
On Friday, Padilla shared a New York Times report stating that the Justice Department had ended its criminal probe into Powell, an inquiry that had become a major obstacle in the Senate confirmation process for Kevin Warsh, President Donald Trump’s pick to become the next Federal Reserve chair.
The investigation focused on whether Powell misled Congress about costly renovations at the Federal Reserve’s headquarters, a project that had drawn scrutiny over its rising price tag.
Padilla framed the end of the probe as overdue.
“It’s about time DOJ dropped its sham investigation into Chair Powell. But it doesn’t change the fact that this was a direct threat by Donald Trump to the Fed’s independence because Chair Powell refused to put politics over good fiscal governance,” Padilla wrote on X.
“This kind of political pressure erodes trust, undermines institutional credibility and risks real economic instability.”
It’s about time DOJ dropped its sham investigation into Chair Powell. But it doesn’t change the fact that this was a direct threat by Donald Trump to the Fed’s independence because Chair Powell refused to put politics over good fiscal governance.
This kind of political pressure… https://t.co/YGUPJPq67d
— Senator Alex Padilla (@SenAlexPadilla) April 24, 2026
The remarks immediately stirred backlash in the comment section.
Many X users pushed back against Padilla’s description of the investigation as a “sham,” while others argued that his post ignored broader concerns about accountability, government spending, and the Federal Reserve’s role in the economy.
The response reflected how deeply divided the Powell matter has become, with even the closing of the investigation failing to quiet the political argument around it.
The Justice Department’s move was announced by U.S. Attorney Jeanine Pirro, whose office had been handling the inquiry.
According to reports from outlets including Reuters and The Associated Press, the investigation centered on renovation costs tied to the Federal Reserve’s Washington buildings.
The matter is still expected to be reviewed by the Federal Reserve’s Office of Inspector General, even though the criminal probe has now been closed.
The decision also comes after growing pressure from Republican senators. Sen. Thom Tillis of North Carolina had been among the most prominent GOP voices calling for the investigation to be dropped.
Tillis had publicly tied his support for Warsh’s confirmation to the closure of the probe, making the matter a direct roadblock for Trump’s nominee.
With the DOJ investigation now out of the way, Warsh’s path through the Senate could become easier.
But the political fight surrounding the Fed is far from settled. Democrats have argued that the Powell probe showed an effort by Trump and his allies to pressure the central bank, particularly at a time when the president has repeatedly pushed for lower interest rates.
Padilla’s post leaned directly into that argument, casting Powell as a public official targeted because he refused to shape economic policy around political demands.
Critics saw it differently.
For them, Padilla’s statement became another example of Democrats defending powerful institutions while dismissing questions about oversight. The sharp reaction on X showed that many users were not convinced by his framing, even after the Justice Department ended the case.
“The billions he spent on a new building could have fed amputee orphans for hundred of years!,” one user commented under the post.
“So answer why the taxpayer cost to renovate the building is $2.5 billion? You cry about funding for public services, yet are silent on this robbery of the publics tax payer dollars. Interest income is still our taxpayer money, so don’t obfuscate reality,” another user added.
“I guess when the Fed chair waists $5 billion dollars on a building remodel there’s nothing to see. Sweep it under the rug,” X user @OSUDOC63 said.
Visibly disturbed, one user accused the California senator: “You’re a liar. And the IG is still investigating. We have a right to know where every penny of our tax money went. You don’t have the right to keep that from us.”
“Makes sense you’d be in favor of fraud, waste, and abuse Jose. How’s Swalwell doing?,” another popular comment read.
The episode now leaves several issues hanging in the air. Powell is no longer facing the criminal investigation, Warsh’s confirmation may move forward, and the Inspector General’s review of the renovation project remains in place.
But the larger dispute over the Federal Reserve’s independence, Trump’s influence on monetary policy, and the political use of investigations continues to build.
Padilla treated the dropped probe as a warning about institutional pressure. His critics treated his post as a political shield for Powell.
And in the comments beneath his own statement, the fight over the Fed became exactly what Washington has increasingly made it: not just a debate over interest rates or building renovations, but a larger argument over power, trust, and who gets to control the direction of the economy.
