Jerome Powell will not face criminal charges over alleged excessive spending on Federal Reserve renovations, as US prosecutors have closed the investigation and referred the matter to internal Fed oversight.
The decision by federal prosecutors removes a potential obstacle to appointing Powell’s successor, though the probe into renovation costs had been quietly pursued for months. Jeanine Pirro, the US attorney overseeing the case and a known ally of former President Donald Trump, announced the closure in online statements, stating that the Federal Reserve’s internal watchdog would now handle any further review.
Even as the Powell matter concludes, a separate but concurrent development reveals growing friction within NATO over support for US-led actions against Iran. Spain has refused to allow the employ of its military bases and airspace for attacks on Iran, becoming the only NATO member to openly deny such requests.
Internal Pentagon communications, reviewed by Reuters, show the Trump administration considering punitive measures against NATO allies deemed insufficiently supportive of the Iran campaign, including possible expulsion from the alliance — though the NATO treaty provides no mechanism to forcibly remove a member state.
The documents express frustration that allies like Spain are withholding access, basing rights, and overflight permissions, which officials describe as “the absolute basis for NATO.” A Pentagon spokesperson echoed Trump’s sentiment, saying allies have not reciprocated US support despite years of investment in the alliance.
Spain’s government dismissed the reports as speculative, with Prime Minister Pedro Sánchez insisting decisions must be based on official documents, not leaked emails. He reiterated Spain’s position ahead of an EU summit in Cyprus, emphasizing adherence to formal diplomatic channels.
Trump has previously suggested expelling Spain from NATO, notably in October 2025, citing its refusal to increase defense spending. However, NATO rules allow only voluntary withdrawal; no legal process exists to eject a member against its will.
The Pentagon maintains it will ensure the president has credible options to compel allied contributions, arguing that current behavior renders some partners ineffective — described in internal memos as “paper tigers” failing to meet their obligations.
Why did prosecutors drop the criminal investigation into Jerome Powell?
Federal prosecutors concluded there was insufficient evidence to pursue criminal charges over renovation spending, opting instead to let the Federal Reserve’s internal oversight body review the matter.
Can NATO actually expel Spain for refusing to support US military actions in Iran?
No, the NATO treaty contains no provision for forcibly removing a member state; a country can only abandon the alliance voluntarily, meaning any expulsion would require Spain’s consent.
