The U.S. Justice Department has closed its criminal investigation into Federal Reserve Chair Jerome Powell, removing a key obstacle to the confirmation of his nominated successor, Kevin Warsh.
U.S. Attorney for the District of Columbia Jeanine Pirro announced on Friday that the probe into the Fed's extensive building renovations would be handed over to the Fed's inspector general. The decision paves the way for a Senate confirmation vote on Warsh, a former top Fed official nominated by President Donald Trump in January.
Powell's term as chair concludes on May 15. Senator Thom Tillis, a North Carolina Republican, had previously stated he would block Warsh's confirmation until the investigation was resolved.
During a Tuesday hearing, Republicans praised Warsh, while Democrats raised concerns about his independence from Trump, transparency regarding his financial holdings, and his shifting stance on interest rates.
Stephen Miran, another Trump appointee to the Fed's board, was confirmed by the Senate just 13 days after his nomination, highlighting the potential speed of Warsh's confirmation.
Investigation Lacked Evidence
The investigation centered on a $2.5 billion renovation of the Fed's building, which Trump had sharply criticized for cost overruns. Last July, Trump visited the site and presented Powell with an inflated cost estimate, which Powell corrected on camera.
Earlier cost estimates for the project were $1.9 billion. The probe also examined Powell's testimony before the Senate Banking Committee last June.
Pirro stated that she would not hesitate to reopen a criminal investigation if warranted. Powell had previously requested the Fed's inspector general to investigate the cost overruns.
The probe was part of a series of Justice Department investigations into Trump's perceived adversaries, but prosecutors struggled to establish grounds for criminal conduct.