Justice Department Closes Investigation into Fed Chair Jerome Powell

The Justice Department has ended its investigation of Federal Reserve Chair Jerome Powell, possibly paving the way for Kevin Warsh's confirmation as the new Fed chair. The probe involved renovation costs for Fed buildings and was perceived as politically motivated, drawing criticism and intervention from a federal judge.

The Justice Department has officially closed its investigation into Federal Reserve Chair Jerome Powell, as announced by U.S. Attorney Jeanine Pirro on Friday. This decision removes an obstacle to the nomination of Kevin Warsh, President Donald Trump's choice for the next central bank leader.

The inquiry, which focused on renovation costs for the Federal Reserve's Washington headquarters, was flagged as controversial and faced scrutiny by a federal judge. The judge had rebuked subpoenas believed to exert improper pressure on Powell for political compliance with Trump’s demands.

Senator Thom Tillis had blocked Warsh's confirmation pending the end of the investigation. With the probe now concluded, the path to Warsh's confirmation appears clearer, although Powell remains committed to staying on the Board until full transparency is achieved.