Trump administration calls off criminal probe into Fed Chair Powell

President Donald Trump's administration has dropped the criminal investigation into Federal Reserve Chair Jerome Powell for his multibillion-dollar renovation project.

The Department of Justice dropped the probe just days after Trump's pick to replace Powell, Kevin Warsh, testified before the Senate Banking Committee. After the hearing, Republican Sen. Thom Tillis of North Carolina reiterated that he would not support Warsh's confirmation unless the investigation into Powell is dropped.

'I will not hesitate to restart a criminal investigation.'

Tillis is one of seven Republicans on the 13-member committee, meaning his vote is needed to advance Warsh's nomination to the Senate floor, presuming no Democrat defectors.

After Tillis once again made his demands clear, U.S. Attorney for the District of Columbia Jeanine Pirro announced the investigation was dropped.

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"This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns — in the billions of dollars — that have been borne by taxpayers," Pirro said in a post on X. "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 added. "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."

Warsh's confirmation now awaits a vote from the Senate Banking Committee before proceeding to the Senate floor, where the nominee will need to secure a simple majority. Powell's term expired in March, but he said he will remain in the role until Warsh is confirmed.

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