The Department of Justice (DOJ) said on Friday that it will drop its investigation into Fed Chair Jerome Powell centered on the central bank’s billion-dollar renovation of its Washington, D.C., headquarters. The decision could clear the way for Kevin Warsh, President Trump’s nominee to succeed Powell, to receive confirmation from the Senate.
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Trade QQQ with leverageSenator Thom Tillis had previously stated that he would block Warsh’s nomination until the probe into Powell was resolved.
Fed Probe Could Be Reopened, Pirro Says
However, U.S. Attorney Jeanine Pirro, who made the announcement, noted that she “will not hesitate to restart a criminal investigation should the facts warrant doing so.”
The probe attracted criticism from financial leaders around the world, who warned that it threatened Fed independence. Powell said the probe was being used as a pretext for the Fed’s independent policy decisions, rather than following Trump’s calls for lower interest rates.