The US Department of Justice is closing its criminal investigation into Federal Reserve Chair Jerome Powell. U.S. Attorney Jeanine Pirro announced on Friday that she directed her office to end the probe, which focused on cost overruns during renovations at the Federal Reserve headquarters.
The decision removes a significant obstacle to the Senate confirmation of Kevin Warsh, President Donald Trump's nominee to replace Powell as head of the central bank. The nomination had been effectively blocked, with a key Senate Republican refusing to move forward unless prosecutors agreed to back off the case. The closure of the investigation is expected to end an impasse and lead to a swift confirmation vote.
The probe was one of several undertaken by the Justice Department into President Trump's perceived adversaries. For months, the investigation had failed to gain traction as prosecutors struggled to articulate a basis to suspect criminal conduct. President Trump had previously accused Powell of improper cost overruns in the building's renovation.
While the criminal investigation is ending, U.S. Attorney Pirro stated that the Federal Reserve's inspector general will investigate the cost overruns in the project to renovate the central bank's headquarters.