The U.S. Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell regarding his management of renovations at the central bank’s headquarters. The U.S. Attorney for Washington, D.C., Jeanine Pirro, announced the decision on Friday, stating that the Federal Reserve’s independent inspector general will now oversee a review of the project.
In a statement, Pirro said her office was closing the probe as the inspector general has been tasked to “scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers.” She added that her office would “not hesitate” to reopen the investigation “should the facts warrant doing so.”
The investigation had become a factor in the confirmation process for President Donald Trump’s nominee to succeed Powell, whose term ends on May 15. The nominee is Kevin Warsh.
During Warsh’s confirmation hearing before the Senate Banking Committee earlier this week, Senator Thom Tillis, a Republican from North Carolina, stated he would withhold his vote for the nominee as long as the Justice Department’s investigation of Powell continued. Tillis urged the department to end the investigation so that he could support Warsh’s confirmation.
The Federal Reserve’s Office of Inspector General is an independent office that conducts audits and investigations of the board’s programs and operations. Its findings are typically made public through reports. The focus of its review will be the cost overruns associated with the renovation project.
No further details regarding the scope or timeline of the inspector general’s review have been released. The Federal Reserve has not issued a public statement on the matter.
