Justice Department closes investigation into Federal Reserve Chairman Jerome Powell

US Department of Justice Ends Probe into US Federal Reserve Chair Jerome Powell’s Building Renovations

The US Department of Justice has announced that it is ending its investigation into the extensive building renovations at the Federal Reserve’s Washington headquarters. The decision was made after the Fed’s inspector general will take over the examination of cost overruns in the project.

US Attorney for the District of Columbia Jeannine Pirro stated on social media that her office would no longer pursue the probe, citing the inspector general’s authority to hold the Federal Reserve accountable to American taxpayers. Pirro had previously asked the Office of Inspector General to examine the cost overruns, stating that she expected a comprehensive report in short order.

The move is seen as a significant development in the confirmation process for Kevin Warsh, a former top Fed official nominated by US President Donald Trump to replace Jerome Powell. Senator Thom Tillis had previously expressed opposition to Warsh’s nomination until the investigation was resolved.

Warsh has been questioned during a Senate hearing about his independence from Trump and his financial holdings. Despite some concerns raised by Democrats, Republicans have praised Warsh’s qualifications for the position. The leadership transition at the Federal Reserve is now expected to proceed quickly.

The Department of Justice had launched an investigation into Trump’s perceived adversaries, including Powell and other officials. However, prosecutors had struggled to articulate a basis for suspecting criminal conduct, and a judge had previously quashed subpoenas issued to the Federal Reserve.

Source: Al Jazeera