The Department of Justice has dropped its investigation into the Federal Reserve and its chair, Jerome Powell, that President Donald Trump sought as he feuded with the central bank’s leader over cutting key interest rates.
The U.S. attorney for Washington, D.C., Jeanine Pirro, announced Friday that her office had concluded its investigation, which centered on a renovation at the Fed’s Washington headquarters. The Federal Reserve’s inspector general has reviewed the project twice and found no wrongdoing.
Pirro said on social media that the inspector general has again been asked to “scrutinize the building costs overruns — in the billions of dollars — that have been borne by taxpayers.”
Pirro said, however, that she “will not hesitate to restart a criminal investigation should the facts warrant doing so.”
She dropped the investigation after a federal judge blocked two subpoenas that prosecutors had issued to the Federal Reserve, a significant setback in the case. The DOJ had also sought to compel grand jury testimony by Powell.
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Earlier this year, Powell described the investigation as a form of “political pressure or intimidation” while denying wrongdoing. The inquiry began after Trump repeatedly complained that Powell and others on the Fed board refused to lower interest rates as rapidly as he wanted.
Powell’s term as chairman expires in May, and he vowed to stay on while the investigation was under way.
The future of the Fed
The conclusion of the investigation clears the way for Trump’s nominee to replace Powell, to advance towards a confirmation vote in the Senate.
Warsh was on Capitol Hill earlier this week for a Senate confirmation hearing, where he faced questioning on interest rates and his independence from Trump.
While most Republicans support his confirmation, Sen. Thom Tillis, R-N.C., blocked it, citing the “bogus” investigation into the Fed.
“Let’s get rid of this investigation so I can support your confirmation,” Tillis said at the hearing.
Many Democrats still oppose confirming Warsh, however. They say his stances focus more on making money for Wall Street than the American people.
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