Justice Department Ends Investigation into Federal Reserve Chair Jerome Powell
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The U.S. Justice Department has concluded its criminal investigation into Federal Reserve Chair Jerome Powell, potentially facilitating the confirmation of his successor, Kevin Warsh.
The U.S. Department of Justice has concluded its criminal investigation into Federal Reserve Chair Jerome Powell, focusing on cost overruns associated with the central bank's headquarters renovation project. U.S. Attorney for the District of Columbia, Jeanine Pirro, announced the decision on Friday, stating that the Federal Reserve's Inspector General will now oversee the inquiry.
"This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers," Pirro stated on X. "Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry."
The Inspector General's office had previously reviewed the renovation project and found no evidence of wrongdoing. The decision to end the Justice Department's probe is expected to clear the way for the Senate confirmation of Kevin Warsh, President Donald Trump's nominee to succeed Powell as Federal Reserve Chair. Warsh's confirmation had been delayed due to opposition from Senator Thom Tillis, who insisted on resolving the investigation before proceeding.
Powell's term as chair is set to conclude on May 15. He has not been charged with any crime and has denied any misconduct related to the renovation project. The Federal Reserve declined to comment on the Justice Department's announcement.
The renovation project, initially estimated at $1.9 billion, has seen costs rise to approximately $2.5 billion due to unforeseen changes, increased material and labor costs, and additional issues such as unexpected asbestos and a sinkhole. The Inspector General's office is continuing its evaluation of the project's substantial cost increases and overruns.
The conclusion of the investigation may facilitate a swift confirmation vote for Warsh, who has pledged to maintain the Federal Reserve's independence from political influence. Powell may continue serving as a Fed board member until 2028, even after his term as chair ends in May.