The US Justice Department has dropped a criminal probe against Federal Reserve Chair Jerome Powell, clearing the way for his replacement’s Senate confirmation amid concerns over President Donald Trump’s criticism of the independent central bank.
“I have directed my office to close our investigation,” US Attorney Jeanine Pirro announced on X.
Pirro said the inspector general for the Fed would instead look into renovation cost overruns at its headquarters, which the Justice Department had been probing.
Trump has routinely criticised the Fed for not following his calls to cut interest rates more rapidly, focusing on Powell in particular.
The probe into Powell, whose term expires May 15, was likely to delay the Senate’s confirmation of Trump’s pick for a new chairman.
Now, Pirro’s announcement is likely to ease that path.
The Trump administration “remains as confident as before that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman,” White House spokesperson Kush Desai said soon after the Justice Department probe was dropped.
