US Justice Department drops investigation into Fed Chair Jerome Powell

The US Justice Department has officially ended its investigation into Federal Reserve Chairman Jerome Powell concerning the organisation's extensive building renovations.

This decision was announced after prosecutors acknowledged that no evidence of criminal activity had been found.

The inquiry focused on a $2.5 billion renovation project at the Federal Reserve, which had drawn criticism for cost overruns.

The investigation was seen as a pressure tactic by the Trump administration to influence Federal Reserve policy, particularly regarding short-term interest rates.

The closure of the probe removes a significant obstacle to the confirmation of Kevin Warsh, President Trump's nominee to succeed Powell as Federal Reserve Chair.

Warsh's confirmation had been stalled due to concerns raised by the ongoing investigation.

Senator Thom Tillis had previously opposed Warsh's confirmation pending the investigation's outcome.

With the probe now closed, a swift Senate vote on Warsh's appointment is anticipated.

The US Attorney for the District of Columbia, Jeanine Pirro, stated that her office would not hesitate to reopen the investigation if new facts emerge.

She also noted that the Federal Reserve's inspector-general would continue to scrutinise the renovation project.

Republican senators praised Warsh during recent hearings, while Democrats questioned his independence from the Trump administration and transparency regarding his financial holdings.

Despite these concerns, the previous Trump nominee to the Federal Reserve's board was confirmed rapidly.

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