US Justice Department Ends Criminal Probe of Fed Chair Jerome Powell

The US Justice Department has officially ended its criminal investigation into Federal Reserve Chair Jerome Powell concerning cost overruns in the central bank's building renovations.

This decision removes a significant obstacle to the Senate confirmation of Powell's nominated successor, Kevin Warsh.

US Attorney for the District of Columbia Jeannine Pirro announced that her office would cease its probe and instead refer the matter to the Federal Reserve's Office of Inspector General for further scrutiny.

Pirro emphasized that the inspector general has the authority to hold the Federal Reserve accountable to taxpayers and expects a comprehensive report soon.

The investigation had been part of a series of inquiries initiated by the Justice Department into individuals perceived as adversaries of former President Donald Trump.

Prosecutors struggled to find evidence of criminal conduct, with a judge describing the evidence as "essentially zero" and quashing subpoenas related to the case.

Powell's term as Fed chair is set to end on May 15, and the probe had delayed the confirmation of Warsh, a former senior Fed official nominated by Trump in January.

Senator Thom Tillis had withheld support for Warsh pending resolution of the investigation, effectively blocking the nomination.

With the probe now closed, the Senate is expected to move swiftly on Warsh's confirmation.

Republicans have praised Warsh, though Democrats have raised concerns about his independence from Trump and transparency regarding his financial holdings.

The investigation into the Fed's renovation costs was sparked by Trump's criticism of the project's escalating expenses, which he claimed were excessive.

Powell had publicly pushed back against the investigation, warning that it threatened the independence of the Federal Reserve.

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