Justice Department Drops Criminal Investigation Into Fed Chair Jerome Powell
The Justice Department dropped its criminal investigation into Federal Reserve Chairman Jerome Powell on Friday. The probe focused on cost overruns during renovations at the Fed's headquarters building.
The Justice Department announced Friday it was ending its criminal investigation into Federal Reserve Chairman Jerome Powell over expensive renovations at the central bank's headquarters.
President Donald Trump had accused Powell of mishandling cost overruns during the building renovation project. The criminal probe had been hanging over Powell as his term winds down.
U.S. Attorney Jeanine Pirro said the Federal Reserve's inspector general will now investigate the cost overruns instead of pursuing criminal charges. This internal review will focus on how the renovation project went over budget.
The decision removes a key obstacle for Kevin Warsh, Trump's pick to replace Powell as Fed chairman. Warsh's confirmation had been complicated by the ongoing criminal investigation into his predecessor.
Powell has led the Federal Reserve since 2018, overseeing the central bank through the pandemic and recent inflation fights. The Fed sets interest rates that influence everything from mortgage costs to credit card rates.
This clears a major hurdle for confirming Powell's replacement, Kevin Warsh, who was nominated by President Trump. The Fed controls interest rates that affect your mortgage, credit cards, and savings accounts.
Kevin Warsh's confirmation process can now move forward. The Fed's inspector general will continue reviewing the renovation costs.
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