The United States Department of Justice (DOJ) is expected to drop its criminal probe of Fed Chair Jerome Powell amid growing pressure from US senators. Sources tell ABC News that the investigation is expected to end as soon as Friday, ending a standoff that threatened to delay the confirmation of Powell’s successor at the central bank.
Jeanine Pirro, the top federal prosecutor in the District of Columbia, announced the DOJ’s decision to abandon the Jerome Powell probe on X. “The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said in her post. “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. Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry.”
The Fed prosecutor, however, did indicate that it is possible to resume the investigation in the near future. “Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.”
Also Read: BRICS De-Dollarization Drive To Officially Take Effect From April 30
Per ABC, Senior DOJ officials have contacted senators in recent days, including Republican Sen. Thom Tillis. who sits on the Senate Banking Committee, informing them of the plan to drop the probe. The officials plan to refer the matter regarding alleged cost overruns at the Fed’s Washington headquarters to the bank’s internal watchdog. The Federal Reserve investigation centers on Powell’s Senate testimony about the Fed’s $2.5 billion headquarters renovation, and it marks an unprecedented escalation of political pressure on Fed officials.
Jerome Powell’s term as Fed Chair ends in May. However, the Chair has said that he will stay on his post until his successor, Trump’s pick Kevin Warsh, is confirmed.