WASHINGTON, United States: The US Justice Department dropped a criminal probe against Federal Reserve Chair Jerome Powell on Friday, clearing the way for his replacement´s Senate confirmation, amid concerns over President Donald Trump´s attacks on the independent central bank.
“I have directed my office to close our investigation,” US Attorney Jeanine Pirro announced on X.
Pirro said the inspector general for the Fed would instead look into renovation cost overruns at its headquarters, which the Justice Department had been probing -- under heavy pressure from Trump. However she added that she would “not hesitate to restart a criminal investigation should the facts warrant doing so.” Trump has upended Washington norms by routinely criticizing the Fed for not following his calls to cut interest rates more rapidly, while making personal attacks on Powell in particular.
The probe into Powell, whose term helming the Fed expires May 15, looked likely to hold up the Senate´s confirmation of Trump´s pick for a new chairman.
Now, Pirro´s announcement is set to ease that path.
The Trump administration “remains as confident as before that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman,” White House spokesman Kush Desai said soon after the Justice Department probe was dropped.
The investigation had been criticized by former Fed chiefs and lawmakers as an attempt to undermine the central bank´s independence from politics.
