US Justice Department ends criminal probe of Fed chair Jerome Powell
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US Federal Reserve chairman Jerome Powell has been routinely criticised by US President Donald Trump for not following his calls to cut interest rates more quickly.
PHOTO: AFP
- US Justice Department ended its criminal probe into Fed Chair Jerome Powell on April 24. This clears the way for Kevin Warsh's Senate confirmation as next chairman.
- The probe, examining renovation costs and Powell's statements, arose amid Trump's pressures for lower interest rates. The Fed's watchdog will now investigate headquarters' renovation costs.
- The investigation was widely criticised as an attempt to undermine the Fed's independence from political pressure. Senator Tillis had blocked nominees until the probe ended.
AI generated
WASHINGTON - The US Justice Department dropped a criminal probe against Federal Reserve chairman Jerome Powell on April 24, clearing the way for his replacement’s Senate confirmation amid concerns over President Donald Trump’s attacks on the independent central bank.
“I have directed my office to close our investigation,” US Attorney Jeanine Pirro announced on X.
Ms Pirro said the inspector-general for the Fed would instead look into renovation cost overruns at its headquarters, which the Justice Department had been probing – under heavy pressure from Mr Trump.
Mr Trump has upended Washington norms by routinely criticising the Fed for not following his calls to cut interest rates more rapidly, while making personal attacks on Mr Powell in particular.
The probe into Mr Powell, whose term expires May 15, looked likely to hold up the Senate’s confirmation of Mr Trump’s pick for a new chairman.
Now, Ms Pirro’s announcement is likely to ease that path.
The Trump administration “remains as confident as before that the Senate will swiftly confirm Mr Kevin Warsh as the next Federal Reserve chairman,” White House spokesman Kush Desai said, soon after the Justice Department probe was dropped.
Mr Kevin Warsh testifying at his Senate confirmation hearing on April 21.
PHOTO: EPA
The investigation had been criticised by former Fed chiefs and lawmakers as an attempt to undermine the central bank’s independence from politics.
At Mr Warsh’s confirmation hearing this week before the Senate Banking Committee, Republican Senator Thom Tillis reiterated that he would continue blocking new appointments to the Fed if the Mr Powell investigation were not resolved.
Mr Tillis’ vote against the appointment would have been enough to set up an impasse on the panel, which Mr Warsh needs to clear to become the next Fed chief. AFP
