US: Justice Dept drops investigation into Fed Chair Powell

The Justice Department has concluded its probe into Federal Reserve Chair Jerome Powell, removing a major hurdle for Kevin Warsh’s nomination as the central bank’s next leader. This development ends a legal challenge that had stalled the confirmation process for Trump’s preferred candidate. With the investigation now closed, the path for Warsh’s appointment appears to be clear.

US Attorney Jeanine Pirro, a top federal prosecutor in Washington, D.C., and a key ally of President Donald Trump, announced the decision to halt the inquiry. The probe had initially focused on cost overruns in the renovations of the Fed’s headquarters but was later transferred to the Office of Inspector General (IG). Pirro emphasized the IG’s role in holding the Fed accountable to the public, stating she anticipated a detailed report soon.

“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said in a social media post. “I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas.”

The investigation has become a significant point in the DOJ’s broader efforts to target Trump’s critics. Last month, a federal judge blocked subpoenas aimed at the Fed’s Board of Governors, arguing they were issued to pressure Powell into backing Trump’s rate-cutting demands or resignation. The judge found prosecutors had presented “essentially zero evidence” of criminal conduct by Powell.

Republican Senator Thom Tillis of North Carolina, a member of the Senate Banking Committee, had previously used the probe as leverage to block Warsh’s confirmation. He labeled the inquiry “baseless” and vowed to withhold support until the DOJ dropped its charges. With the investigation terminated, Tillis’ obstruction no longer stands in the way of Warsh’s potential nomination.