Trending 
The U.S. Justice Department has closed its criminal investigation into Federal Reserve Chair Jerome Powell, a move that removes a significant hurdle for the confirmation of his successor.
U.S. Attorney Jeanine Pirro announced the decision on Friday, stating that while her office would not hesitate to reopen the case if new facts emerged, the matter is currently being handed over to the Fed’s inspector general.
The probe, which focused on renovation cost overruns at the central bank’s headquarters, had been criticised by many lawmakers and former officials as a politically motivated attempt to undermine the Fed’s independence.
The dismissal of the investigation is expected to break a legislative impasse in the Senate Banking Committee.
Republican Senator Thom Tillis had previously threatened to block new appointments to the Fed board until the Powell matter was resolved.
With the probe closed, the path is now clearer for the swift confirmation of Kevin Warsh, President Trump’s nominee to take over the chairmanship when Powell’s term expires on May 15.
The White House has expressed confidence that the Senate will now move forward quickly with the appointment.
Despite the investigation’s closure, political tensions surrounding the central bank remain high.
Senator Elizabeth Warren and other critics have pointed out that a separate legal battle involving Fed Governor Lisa Cook continues to loom and that the “transparent and final” resolution Powell sought may still be incomplete.
While it is rare for a former chair to remain on the board of governors after stepping down, Powell’s term as a governor lasts until 2028.
All eyes are now on his scheduled press conference next week for clarification on his future role and his response to the end of the probe.
