The Department of Justice has officially dropped its investigation into Federal Reserve Chairman Jerome Powell concerning alleged cost overruns during massive renovations of the Fed's headquarters.
US Attorney Jeanine Pirro confirmed that the matter will now be handled by the central bank's inspector general, a move the White House says will better utilize the office's investigative authorities to address concerns over fiscal mismanagement.
President Trump has long criticized the ballooning price tag of the renovations, which are now projected to cost $3.1 billion—well above the original $2.5 billion estimate.
This investigation follows a period of intense friction between the President and Powell, with Trump publicly slamming the Fed chair for failing to lower interest rates and questioning his competence. Powell, whose term expires in May, previously attempted to frame the DOJ's scrutiny as an attack on the central bank's independence.
However, the administration remains focused on the future, with White House spokesman Kush Desai confirming that the administration expects the Senate to swiftly confirm Kevin Warsh as the next Fed Chairman to restore accountability and competence to the institution.
The shift in oversight comes as Republican Senator Thom Tillis had signaled he would withhold support for Warsh’s nomination unless the administration moved to drop the DOJ probe, highlighting the ongoing political maneuvering surrounding the leadership of the nation's central bank.
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