The US justice department is dropping its investigation into Federal Reserve chairman, Jerome Powell, over alleged building cost overruns. US Attorney Jeanine Pirro stated that instead of the ongoing criminal investigation, there would be an internal inquiry led by the central bank's inspector general.
President Donald Trump has expressed concerns regarding the costs of the Fed's building renovations, reflecting a long-standing conflict with Powell. As Powell's term approaches its end, the US Senate is currently evaluating Trump's nominee for his successor, Kevin Warsh. Notably, a key Republican senator, Thom Tillis, has indicated that he would withhold his support for Warsh unless the investigation into Powell is dropped.
American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement, and the Office of the Inspector General's more powerful authorities best position it to get to the bottom of the matter, said White House spokesman Kush Desai. He added that the White House is confident in the swift confirmation of Warsh as the next Federal Reserve Chairman, aimed at restoring competence in Fed decision-making.
Pirro, in a statement on social media, emphasized her readiness to relaunch a criminal investigation should new facts emerge. The Federal Reserve has declined to comment on the ongoing developments.
The inspector general's office is actively reviewing the situation and plans to disclose the findings to the public and Congress upon completion, although no timeline has been provided.
Critically, President Trump has been vocally critical of Powell, labeling him as a knucklehead in light of the Fed's interest rate policies. Following the investigations and Powell's rigorous defense of the Fed's independence, Trump has threatened to fire Powell if he does not resign at the end of his term, creating further uncertainty around the future leadership of the Federal Reserve.
Overall, while the inquiry by the Justice Department may have concluded, the scrutiny over the Fed's renovation costs and the political dynamics surrounding Powell's leadership continue to unfold.
President Donald Trump has expressed concerns regarding the costs of the Fed's building renovations, reflecting a long-standing conflict with Powell. As Powell's term approaches its end, the US Senate is currently evaluating Trump's nominee for his successor, Kevin Warsh. Notably, a key Republican senator, Thom Tillis, has indicated that he would withhold his support for Warsh unless the investigation into Powell is dropped.
American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement, and the Office of the Inspector General's more powerful authorities best position it to get to the bottom of the matter, said White House spokesman Kush Desai. He added that the White House is confident in the swift confirmation of Warsh as the next Federal Reserve Chairman, aimed at restoring competence in Fed decision-making.
Pirro, in a statement on social media, emphasized her readiness to relaunch a criminal investigation should new facts emerge. The Federal Reserve has declined to comment on the ongoing developments.
The inspector general's office is actively reviewing the situation and plans to disclose the findings to the public and Congress upon completion, although no timeline has been provided.
Critically, President Trump has been vocally critical of Powell, labeling him as a knucklehead in light of the Fed's interest rate policies. Following the investigations and Powell's rigorous defense of the Fed's independence, Trump has threatened to fire Powell if he does not resign at the end of his term, creating further uncertainty around the future leadership of the Federal Reserve.
Overall, while the inquiry by the Justice Department may have concluded, the scrutiny over the Fed's renovation costs and the political dynamics surrounding Powell's leadership continue to unfold.
