The United States Justice Department is closing its investigation into Federal Reserve Chair Jerome Powell, clearing an obstacle to the confirmation of Kevin Warsh, President Donald Trump’s preferred pick to lead the US central bank.
US Attorney Jeanine Pirro, the top federal prosecutor in Washington DC and a Trump ally, said the inquiry, which had prompted a key Republican senator to block Trump’s banking nominees, will for now be handed to the Fed’s Office of Inspector General (IG). The probe had focused on cost overruns in renovations of the Fed’s Washington headquarters.
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said on social media, adding she expects a comprehensive report “in short order” and is confident it will resolve questions that led her office to issue subpoenas.
The probe had become a flashpoint in the Justice Department’s scrutiny of Trump critics. Last month, a federal judge blocked subpoenas to the Fed’s Board of Governors, saying they were issued for the improper purpose of pressuring Powell to lower interest rates or resign. Chief US District Judge James Boasberg found prosecutors had shown “essentially zero evidence” that Powell committed a crime.
Republican Senator Thom Tillis of North Carolina, a member of the Senate Banking Committee, called the investigation “baseless” and had vowed not to support Warsh’s confirmation until the DOJ dropped its actions. Tillis’ blockade had effectively stalled Warsh’s nomination, an impediment that has now been removed.
Edited by: Dmytro Hubenko