US Justice Department Ends Jerome Powell Inquiry, Senate Advances Warsh Nomination

The US Justice Department has announced the cessation of its investigation into Federal Reserve Chairman Jerome Powell, which focused on alleged cost overruns in the renovation of central bank buildings. US Attorney Jeanine Pirro confirmed the shift, stating that an internal investigation led by the Federal Reserve's inspector general would proceed instead.

This development unfolds as President Donald Trump's nominee for Powell's replacement, Kevin Warsh, is currently under consideration by the US Senate. Senator Thom Tillis, a prominent Republican, had reportedly conditioned his support for Warsh's nomination on the administration dropping its inquiry into Powell.

White House spokesman Kush Desai stated, "American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement, and the Office of the Inspector General's more powerful authorities best position it to get to the bottom of the matter." Desai further added, "The White House remains as confident as before that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman to finally restore competence and confidence in Fed decision-making."

The dropped investigation follows a period of contention between President Trump and Powell, initiated last year when Trump criticised the Fed's building renovation expenditures. Powell had previously released a video in January disclosing that the Justice Department had issued subpoenas and threatened a criminal indictment over his testimony to a Senate committee concerning the renovations.