Department of Justice drops investigation into Jerome Powell

The US Department of Justice (DOJ) has announced that it is closing its criminal investigation into Federal Reserve Chair Jerome Powell, ending a probe related to the funding of the Fed's headquarters renovation in Washington. The decision, made public by Federal Prosecutor Jeanine Pirro, follows a legal setback in which a judge quashed subpoenas targeting the institution. The investigation had served as a political hurdle amid heightened tensions surrounding the central bank's leadership.

This withdrawal clears the path for the nomination of Kevin Warsh, Donald Trump's pick to succeed Jerome Powell. Republican Senator Thom Tillis had previously conditioned his support on the dismissal of the case, effectively stalling the confirmation process. The move marks a significant shift in a matter where political and institutional stakes remain deeply intertwined.

The review of cost overruns regarding the real estate project has now been handed over to the Fed's Inspector General, who is tasked with clarifying the matter. Authorities expect a comprehensive report in the coming weeks. However, the prosecutor indicated that a criminal probe could be reopened should new evidence emerge, underscoring the ongoing sensitivity of the case.