In brief
In a significant development, the US Justice Department has closed its investigation into Federal Reserve Chairman Jerome Powell, who faced scrutiny over escalating costs related to building renovations. An internal review will be taken over by the Federal Reserve's inspector general, as President Trump continues his feud with Powell over spending issues. This move comes as Powell's term nears its end and scrutiny increases around Trump's nominee, Kevin Warsh.
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 that instead there will be an internal investigation led by the central bank's inspector general.President Trump has criticized the Fed's building renovation costs as excessive, highlighting a long-standing conflict with Powell. Powell's term is nearing its end, and the US Senate is currently evaluating Trump's nominee for his replacement, Kevin Warsh. Notably, a key Republican, Thom Tillis, has made support for Warsh conditional on Trump's administration terminating its investigation into Powell.White House spokesman Kush Desai commented that American taxpayers deserve clarity regarding the Fed's financial management, noting that the Office of Inspector General has more powerful authorizations for this task. Although the investigation is concluded, Pirro indicated she would not hesitate to restart it if necessary.The Fed did not comment on the situation, but the inspector general's office is actively working on completing its review and plans to make the findings publicly available. This investigation's closure also coincides with Trump's repeated calls to lower interest rates, which he views as crucial for economic stability.
