The U.S. Department of Justice is wrapping up its investigation into Federal Reserve Chairman Jerome Powell, a move seen as clearing the way for confirmation of President Donald Trump’s nominee to head the Federal Reserve, Kevin Warsh, whose term ends on May 15.U.S. Attorney Jeanine Pirro said a criminal investigation into cost overruns related to renovations of the Federal Reserve’s Washington headquarters will be concluded, with a review continuing by the Office of the Inspector General (OIG), which is already reviewing the project, Reuters reported.“I have directed my office to close our investigation while the (Office of the Inspector General) conducts this investigation,” Pirro said in a social media post, adding that she could reopen the criminal investigation “if the facts warrant it.”The move also comes amid a long-standing conflict between Trump and Powell over interest rates and widespread concerns about the Fed’s independence.The investigation has been examining the Fed’s $2.46 billion headquarters renovation project, including cost overruns and Powell’s statement to Congress last year.Reuters reported that the current budget is about $1.1 billion higher than the 2020 appropriation, with the increase mainly due to rising labor and material costs.The investigation first became public in January after Powell revealed in a video that he had been subpoenaed by the Justice Department and said the probe was being used to put pressure on the Fed on monetary policy, The Guardian reported.The Fed board suffered a major setback last month when Chief U.S. District Judge James Boasberg blocked a subpoena to the Fed board of governors, saying prosecutors presented “essentially zero evidence” of Powell’s crimes and found the subpoena was issued for an improper purpose.The investigation has also hampered Warsh’s path to confirmation, with Republican Sen. Thom Tillis saying he would not support the nomination while the investigation is ongoing. During Wash’s confirmation hearing, Tillis said: “Let’s wrap up the investigation so I can support your nomination.”Trump also defended Powell’s review, saying last week, “Whether it’s incompetence, corruption or both, I think you have to find out.”Powell has said he has no intention of leaving the Fed until the matter is resolved “transparently and finally.”Pirro said the Fed’s internal regulators will continue to review the matter, and Senate Banking Committee Chairman Tim Scott has sought a briefing within 90 days.The U.S. Supreme Court is expected to rule in June on the constitutionality of Trump’s firing of Federal Reserve Governor Lisa Cook, putting broader questions around the central bank’s independence under scrutiny.
