In brief
The US Justice Department has dropped its investigation into Jerome Powell, Chairman of the Federal Reserve, over construction cost overruns. An internal review will now be conducted by the Fed's inspector general. The decision comes amid ongoing political tensions relating to Powell's tenure, as President Trump critiques the Fed's spending and pushes for a new nominee.
The US justice department is dropping its investigation into the Federal Reserve chairman, Jerome Powell, over alleged building cost overruns. US Attorney Jeanine Pirro stated there will be an internal investigation led by the central bank's inspector general instead. President Donald Trump has criticized the Fed's spending on building renovations, labeling them excessive, amid a long-standing feud with Powell. Powell's term is nearing its end with discussions ongoing in the Senate regarding Trump’s nominee for his replacement, Kevin Warsh. Senator Thom Tillis has withheld his support for Warsh unless the investigation into Powell is dropped.White House spokesman Kush Desai noted, “American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement." Desai reiterated confidence in Warsh's swift confirmation to restore credibility within the Fed’s decision-making process. Pirro mentioned on X that she might restart a criminal investigation should the evidence necessitate it. The Fed declined to comment on the investigation.The inspector general's office revealed it is actively working to complete the review and intends to share the findings with the public and Congress upon conclusion, but did not provide a timeline for when this would occur.In light of ongoing political dynamics, Trump has indicated potential actions against Powell if he does not step down and has consistently expressed discontent over interest rate policies.
