The Department of Justice has officially dropped its criminal probe into Federal Reserve Chairman Jerome Powell, ending a contentious investigation into alleged cost overruns at the Fed's headquarters.
US Attorney Jeanine Pirro announced that the matter will now be handled by the central bank's inspector general, noting that her office retains the authority to restart a criminal investigation if the facts demand it.
The move follows months of friction between President Trump and Powell, with the President repeatedly criticizing the Fed’s fiscal management and the ballooning $3.1 billion price tag on renovation projects that were originally forecasted at $2.5 billion.
White House spokesman Kush Desai stated that the inspector general is better positioned to hold the Fed accountable for its fiscal mismanagement. As Powell’s term nears its May expiration, the administration is moving forward with its nomination of Kevin Warsh to lead the Fed, aiming to restore competence to the institution.
While Powell has previously attempted to frame the scrutiny as an attack on the Fed's independence, the administration remains focused on ensuring that taxpayer funds are not squandered and that monetary policy is handled with the necessary oversight.
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