U.S. News
DOJ Drops Probe Into Fed Chair Over Renovation Overruns
Clear Facts
- The Department of Justice closed its criminal investigation into Federal Reserve Chairman Jerome Powell.
- The probe focused on major cost overruns tied to renovations at the central bank’s headquarters.
- U.S. Attorney Jeanine Pirro said the matter will now go to the Federal Reserve Inspector General.
The Department of Justice announced Friday that it has closed its criminal probe into Federal Reserve Chairman Jerome Powell.
The investigation focused on massive cost overruns during renovations at the central bank’s headquarters.
U.S. Attorney Jeanine Pirro said the Fed Inspector General will now scrutinize billions in building costs borne by American taxpayers.
She said she could restart criminal proceedings if future findings warrant such action.
“Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so,” Pirro stated.
Pirro said the transition to the Inspector General should provide answers about subpoenas previously issued by her office.
This shift follows calls from some lawmakers to handle the matter through administrative or congressional oversight.
“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,” White House Spokesman Kush Desai stated.
The closure of the probe likely clears the path for Kevin Warsh to be confirmed as the next Federal Reserve Chairman.
Moving forward, the administration seeks to restore competence to the central bank’s leadership and decision-making processes.
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