DOJ ends investigation of Fed Chair Powell, clearing Warsh path

The Department of Justice dropped its criminal investigation of Federal Reserve Chair Jerome Powell on Friday, removing a major obstacle to President Donald Trump's nomination of Kevin Warsh to replace him as head of the central bank. Jeanine Pirro, the top federal prosecutor in the District of Columbia, announced the decision on social media platform X, stating that her office had closed the investigation while referring the matter to the Federal Reserve's internal inspector general for review of cost overruns related to a multi-billion-dollar renovation of the Fed's headquarters in Washington. Senator Thom Tillis, a North Carolina Republican, had placed an effective hold on Warsh's Senate confirmation until the criminal probe of Powell was dropped, and Warsh attended his confirmation hearing on Capitol Hill this week. The investigation had been crippled earlier when a federal judge quashed subpoenas issued to the Federal Reserve related to the headquarters project. Pirro emphasized that the inspector general has the authority to hold the Fed accountable to American taxpayers and expressed confidence that the outcome would help resolve questions that prompted the subpoenas. However, she left the door open for restarting a criminal investigation should the facts warrant it. Trump's administration has maintained pressure on Powell for over a year, with the president repeatedly insulting him and calling him "Tardón Powell" in an effort to force faster interest rate cuts. Powell, who was originally appointed to lead the Fed during Trump's first term, sees his tenure come to an end in May.