The United States Justice Department is closing its investigation into Federal Reserve Chair Jerome Powell, removing an obstacle to the confirmation of Kevin Warsh, President Donald Trump’s preferred choice to head up the US central bank.
The move by US Attorney Jeanine Pirro, the top federal prosecutor in Washington DC and a Trump ally, for now ends an inquiry which had prompted a key Republican senator to block Trump’s bank nominees.
The inquiry had been investigating cost overruns in renovations of the Fed’s Washington headquarters but Pirro said she โ had โ instead asked the Fed’s internal watchdog, the Office of Inspector General (IG), to take over.
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said in a social media post.
“I expect a comprehensive report in short order โand am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas.”
What do we know about Powell probe
The Powell probe has become the latest flashpoint in the Justice Department’s pursuit of Trump adversaries and critics.
Last month, a federal judge โblocked subpoenas to the Fed’s Board of Governors, saying they had been issued for the improper purpose of pressuring Powell to acquiesce to Trump’s request 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 Carolina, โa member of the Senate Banking Committee, also called the investigation into Powell “baseless” and vowed not to support the appointment of Kevin Warsh until the DOJ dropped its charges.
Tillis’ blockade had therefore effectively stalled Warsh’s confirmation โย but this obstacle has now been removed.
Edited by: Dmytro Hubenko