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- Justice Department drops investigation into Fed Chair Jerome Powell
Justice Department drops investigation into Fed Chair Jerome Powell
An article summarized by CBS News:
Federal prosecutors have ended their criminal investigation into Federal Reserve Chair Jerome Powell, removing a major obstacle for Kevin Warsh, President Donald Trump’s nominee to lead the central bank. U.S. Attorney Jeanine Pirro said the case is being closed while the Fed’s inspector general reviews potential cost overruns tied to the renovation of its Washington, D.C., headquarters.
The investigation had centered on Powell’s testimony to Congress about the long-running renovation project, which has ballooned from roughly $1.9 billion to nearly $2.5 billion. A federal judge previously blocked subpoenas tied to the probe, suggesting they may have been used to pressure Powell over interest rate decisions. The Justice Department ultimately chose not to pursue an appeal, signaling a shift away from the criminal case.
With the probe dropped, attention now turns to the inspector general’s review and Warsh’s confirmation process. Warsh has pledged to maintain the Federal Reserve’s independence if confirmed. Meanwhile, the episode unfolded against ongoing tensions between Trump and Powell over interest rate policy, as Powell’s term as chair approaches its end.