The criminal investigation into Federal Reserve chairman Jerome Powell is ending, the US Department of Justice said
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The Justice Department is closing its investigation into cost overruns in the Federal Reserve under Chairman Jerome Powell, US Attorney Jeanine Pirro said on Friday.
Pirro said the Federal Reserve Inspector General has now been asked to review the construction costs.
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said in a social media post. “I expect a full report soon and I hope the outcome will help to resolve once and for all the questions that led this office to issue the summons.”
However, Pirro said “he will not hesitate to restart the criminal investigation if the truth is right.”
A federal judge last month blocked subpoenas from the Fed’s board of governors, finding that they were issued with the improper purpose of pressuring Powell to comply with US President Donald Trump’s demands to immediately lower interest rates or resign. Recently this week, Pirro vowed to appeal the decision and continue the investigation.
Powell’s term as chairman is expected to end on May 15.
Pirro’s investigation has hardened Powell’s stance on remaining in the Fed governor’s seat beyond 2028, the last full year of Trump’s presidency. Fed chiefs typically leave the board when their leadership terms are over.
The Trump administration’s threats against Powell, including a criminal investigation, have threatened to delay the Senate confirmation of Kevin Warsh, Trump’s nominee to replace Powell.
North Carolina Sen. Thom Tillis, a Republican member of the Senate banking committee, said he considers the investigation an unreasonable attack on the Fed’s independence and will block Warsh’s confirmation until he is dismissed.
Democrat Warren was not happy with the announcement
Democrats and former Federal Reserve leaders have also criticized the spending probe as a pretext to undermine the panel’s independence from the White House. Trump often cites inaccurate numbers about the cost of renovations, receiving a correction from Powell last year when the pair stood together.
Three of the Fed’s seven governors were appointed by then-president Joe Biden, including Lisa Cook. The Trump administration wants to fire Cook, a case that is still being heard in the US Supreme Court.
The introduction of a criminal investigation into the chairman of the Federal Reserve, Jerome Powell, politicians on all sides are asking what the independence of the institution in charge of the country’s monetary policy could mean.
Sen. Elizabeth Warren, a member of the banking committee, said on social media that Friday’s announcement was an apparent bid to help clear the nomination of “Trump’s sock puppet Kevin Warsh,” pointing to the failure to drop Cook’s pursuit, and Pirro’s promise to reopen the criminal investigation of Powell if necessary.
“Anyone who believes that Donald Trump’s corrupt plan to take over the Fed is over is delusional,” said Warren, Democrat of Massachusetts.
Warsh, who was Fed governor between 2006 and 2011, said that “monetary policy independence is important,” in remarks Tuesday to US senators.
Warsh, 57, also said he made no promises to Trump about lowering interest rates. Shortly before the Senate hearing, Trump had told CNBC that he would be disappointed if rate cuts did not happen quickly under Warsh’s leadership.
During his testimony on Tuesday, Warsh blamed the central bank under Powell for inflation in the wake of the COVID-19 pandemic, which he said continues to hurt American families.
