DOJ closes criminal investigation against Jerome Powell – what this means for Kevin Worsh<\/figcaption><\/figure>\n<\/div>\nThe Justice Department on Friday closed its criminal investigation into Federal Reserve Chairman Jerome Powell.<\/p>\n
The move by US Attorney Jeanine Pirro has removed a major hurdle for President Donald Trump to nominate Kevin Wersh to replace him.<\/p>\n
North Carolina Republican Sen. Thom Tillis had effectively blocked the Senate from confirming Warsh until the criminal investigation of Powell was dropped.<\/p>\n
Jeanine Pirro, the top federal prosecutor for the District of Columbia, announced the decision to drop the Powell investigation in a post on X, which came three days after Warsh testified before the Senate Banking Committee on his nomination.<\/p>\n
Pirro said the Fed’s inspector general will investigate the cost overruns of the central bank’s billion-dollar renovation of its headquarters in Washington, DC.<\/p>\n
The Justice Department on Friday dropped a criminal investigation into Federal Reserve Chairman Jerome Powell, clearing a major hurdle for the Senate to confirm President Donald Trump’s nomination of Kevin Wersh to replace him.<\/p>\n
The investigation was first made public in January when Powell released a video announcing that he had been subpoenaed by the Justice Department. <\/p>\n
In rare, sharp comments about the White House, Powell said the investigations were not really about the Fed’s renewal, but rather were a “pretext” to pressure the central bank to lower interest rates.<\/p>\n
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions \u2013 or whether monetary policy will instead be guided by political pressure or intimidation,” Powell said at the time.<\/p>\n
Pirro said the Federal Reserve’s inspector general will investigate cost overruns in the billion-dollar renovation of the central bank’s headquarters in Washington. He claimed that the renewal was his reason for investigating Powell.<\/p>\n
He and others had said that the real reason for Pirro’s investigation was to pressure Powell and the Fed to lower interest rates as Trump wanted.<\/p>\n
He said Wednesday he was committed to continuing the investigation, which was interrupted by a federal judge’s decision to void the subpoena his office issued to the feds.<\/p>\n
Senator Thom Tillis, a North Carolina Republican and member of the Banking Committee, effectively blocked a full Senate vote on Warsh’s nomination until the criminal investigation was concluded.<\/p>\n
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said in his X post on Friday.<\/p>\n
“I have directed my office to close our investigation as the IG is conducting this investigation.”<\/p>\n
She added, “However, be well aware that I will not hesitate to reopen a criminal investigation if the facts warrant it.”<\/p>\n
This came as the White House received bipartisan criticism over the investigation, including from Republican Senator Thom Tillis, who said he would block the nomination of Kevin Warsh, Trump’s pick to replace Powell, until the Justice Department concludes its investigation.<\/p>\n
The move removes a key hurdle for Kevin Wersh as Fed investigation turns to internal oversight<\/p>\n<\/p><\/div>\n