DOJ Ends Probe Into Powell, Clears Path for Warsh Confirmation

The U.S. Justice Department has officially ended its investigation into Federal Reserve Chair Jerome Powell, removing a major obstacle for Kevin Warsh to be confirmed as the next Fed chair.

U.S. Attorney Jeanine Pirro announced that her office is closing the probe related to the Federal Reserve’s building renovation project. She stated that the Fed’s inspector general will now review the matter instead.

This decision is expected to speed up Warsh’s confirmation in the Senate. Earlier, Senator Thom Tillis had opposed Warsh’s nomination until the investigation was resolved.

Investigation Found No Evidence

The investigation focused on a $2.5 billion renovation project at the Federal Reserve, which had drawn criticism for cost overruns. Earlier estimates had placed the cost at $1.9 billion.

However, prosecutors failed to find any evidence of criminal wrongdoing. In fact, Judge James Boasberg stated that there was “essentially zero evidence” against Powell and dismissed subpoenas issued during the probe.

Political Pressure Around Fed Policies

The investigation came during ongoing tensions between former President Donald Trump and the Federal Reserve. Trump has repeatedly pushed for lower interest rates, while the Fed has maintained rates around 3.6% to control inflation.

Powell had earlier said the probe appeared to be linked to the Fed’s independent decision-making on interest rates, rather than the renovation issue.

Warsh Promises Independence

During his Senate hearing, Warsh said that Trump never asked him to commit to cutting interest rates.

“The president never asked me to make any specific rate decision,” Warsh said, adding that he would not agree to such pressure.

However, Democrats, including Senator Elizabeth Warren, raised concerns about Warsh’s independence and transparency in financial matters.

With the investigation now closed, the Senate is expected to move forward with Warsh’s confirmation vote soon. Powell’s term as Fed chair ends on May 15, though he may remain on the board until 2028.

The development marks a key moment for U.S. monetary policy, as leadership at the Federal Reserve could soon change amid ongoing economic uncertainty.