DOJ drops criminal probe into Federal Reserve Chair Jerome Powell

(The Hill) — The Department of Justice (DOJ) announced Friday it was dropping its criminal investigation into Federal Reserve Chair Jerome Powell and his handling of renovations at the central bank.

The announcement from Jeanine Pirro, U.S. attorney for the District of Columbia, likely clears the way for the confirmation of Kevin Warsh, the former Fed board member nominated by President Donald Trump to replace Powell as Fed chair.

In a Friday 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."

The end of the criminal probe into the Fed and Powell comes after retiring Sen. Thom Tillis (R-N.C.) reiterated last week that he would not support any Trump nominee to the bank until the DOJ wrapped up its investigation, which he dismissed 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, given the narrow 13-11 GOP majority on the committee.

Tillis enthusiastically praised Warsh at the nominee's confirmation hearing before the Banking Committee earlier this week and pledged to support him as soon as the probe into the Fed and Powell ended.

White House spokesperson Kush Desai expressed confidence in the path ahead for Warsh after Pirro's announcement.

"American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement, and the Office of the Inspector General's more powerful authorities best position it to get to the bottom of the matter," Desai said in a statement.