The Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell, likely paving the way for Trump-backed successor, Kevin Walsh, to be confirmed.
U.S. Attorney for the District of Columbia Jeanine Pirro shared the status of the case on social media Friday, which focused on Powell and the Fed’s $2.5 billion renovation project.
Pirro announced that the Fed’s inspector general would investigate the case instead.
"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," she 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."
Powell said he would not leave his post until a criminal investigation is complete. Powell's term as Fed chief ends on May 15, while his term on the board of governors extends to 2028.
But President Donald Trump threatened to fire Powell if he doesn't step down from the Federal Reserve entirely.
Friday’s decision to close the Powell case could lead to a swift Senate confirmation vote for Warsh, a former top Fed official, who Trump hand-picked to replace Powell as Fed chief.
Sen. Thom Tillis (R-N.C.) had already said he would oppose Warsh until the Powell investigation was resolved, effectively blocking his confirmation.
Meanwhile, Trump has renewed calls for the central bank to cut interest rates and said he would be disappointed if Warsh didn’t act on it.
When pressed on the issue during his confirmation hearing Tuesday, Warsh never promised Trump that he would cut interest rates.
“The president never once asked me to commit to any particular interest rate decision, period,” Warsh told the Senate Banking Committee. “Nor would I ever agree to do so if he had. ... I will be an independent actor if confirmed as chair of the Federal Reserve.”
As for the renovation project, a federal prosecutor last month conceded that the Justice Department’s investigation into the Fed’s renovation project lacked evidence.
Chief Judge James Boasberg ruled March 11 that the government produced “essentially zero evidence” to suspect Powell of a crime.