The United States Department of Justice has ended its criminal investigation into Jerome Powell, the chairman of the U.S. Federal Reserve.
This decision clears the way for the Senate to move forward with the confirmation of President Donald Trump’s nominee for the next Fed chairman, Kevin Warsh.
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The investigation focused on cost overruns during the renovation of the Federal Reserve headquarters.
U.S. Attorney Jeanine Pirro announced on X that she had ordered the investigation to be closed.
She said the Federal Reserve’s inspector general would now handle the matter instead.
However, she added that the criminal investigation could be reopened if new facts require it.
Trump has often criticised the Federal Reserve for not reducing interest rates quickly enough and has repeatedly attacked Powell personally.
Many people believed the investigation was adding pressure on Powell and threatening the independence of the central bank.
Powell’s term as Fed chairman will end on May 15.
The investigation had also delayed the Senate confirmation of Warsh, who Trump wants to replace Powell.
Republican Senator Thom Tillis had said he would block new Federal Reserve appointments if the investigation against Powell was not settled.
White House Press Secretary Karoline Leavitt asked the Senate to quickly confirm Warsh, calling him a strong candidate to lead the Federal Reserve.
But Democratic Senator Elizabeth Warren said the case was unfair and warned that political pressure on the Fed still remains.
She called the investigation “bogus” and also mentioned another case involving Fed Governor Lisa Cook, who is facing separate allegations.
Powell first became Fed chairman during Trump’s first term in 2018 and was later reappointed by former President Joe Biden.
He had earlier said he would not leave his position on the Fed’s board until the Justice Department investigation was fully closed with transparency.
Now that the case has been dropped, attention will turn to Powell’s next public remarks after the upcoming Federal Reserve policy meeting.