DOJ closes Powell probe, clears path for new Fed chair
6.6 Regulation The DOJ closed its probe into Jerome Powell over Fed renovation costs, clearing the way for Kevin Warsh’s confirmation. The case is now with the Fed’s inspector general for further review.
The U.S. Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell. The probe centered on alleged cost overruns related to a $2.5 billion renovation of the Federal Reserve’s Washington headquarters, and whether Powell misled Congress about these expenses. This investigation had become a significant political issue, impacting the Senate confirmation process for Kevin Warsh, the nominee for the next Fed chair. With the case now closed, a major obstacle to Warsh’s confirmation has been removed. The matter has been referred to the central bank’s inspector general for further review. Jeanine Pirro, announcing the decision, emphasized that the investigation could be reopened if new evidence emerges. This development follows legal setbacks for prosecutors and increased pressure from senators. The outcome is expected to shape public perception of the Federal Reserve’s leadership and its ongoing policies.
