The Department of Justice (DOJ) announced it was dropping its criminal investigation into Federal Reserve Chair Jerome Powell.
The announcement came Friday morning from Jeanine Pirro, U.S. attorney for the District of Columbia.
This move likely clears the path for Kevin Warsh, the former Fed board member nominated by Trump to replace Powell as Fed chair, to be confirmed.
In a post on social media, Pirro said she asked the Fed inspector general (IG) to investigate Powell and the bank’s renovations, and would be closing the criminal investigation the DOJ launched in December.
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas,” Pirro wrote.
“Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.”
Retiring Sen. Thom Tillis (R-N.C.) said last week he would not support any Trump nominee to the bank until the DOJ wrapped up its investigation. He dismissed the probe as a baseless political pressure campaign.
As a member of the Senate Banking Committee, Tillis has the ability to block nominees from being approved by the panel for a full confirmation vote, since there is a narrow 13-11 GOP majority on the committee.
Tillis praised Warsh at the nominee’s confirmation hearing before the Banking Committee earlier this week.
He pledged to support him as soon as the probe into the Fed and Powell ended.
