Justice Department Ends Investigation into Powell
The US Justice Department has decided to discontinue its investigation into Federal Reserve Chairman Jerome Powell regarding alleged cost overruns on building renovations.
US Attorney Jeanine Pirro announced that instead of continuing the probe, an internal investigation will be conducted by the Federal Reserve's inspector general.
Background and Political Context
Last year, President Donald Trump criticized the Federal Reserve's building renovation expenses, citing them as excessive amid an ongoing dispute with Powell.
Powell's term as Fed Chair is approaching its conclusion, and the US Senate is currently reviewing Trump's nominee for his successor, Kevin Warsh. Notably, Republican Senator Thom Tillis withheld his support for Warsh's nomination pending the cessation of the Justice Department's investigation.
"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," said White House spokesman Kush Desai in a statement.
"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."
Trump's Criticism and Powell's Response
After returning to office last year, President Trump urged the Federal Reserve to reduce interest rates and subsequently suggested the possibility of dismissing Powell, a move that some legal experts considered potentially unlawful.
In January, Powell took the unusual step of releasing a video in which he disclosed that the Justice Department had issued subpoenas to the Federal Reserve and threatened criminal indictment related to his testimony before a Senate committee concerning the renovations of Federal Reserve buildings.
