The US justice department is dropping its investigation into the Federal Reserve chairman, Jerome Powell, over alleged building cost overruns. US Attorney Jeanine Pirro announced that the investigation would transition to an internal inquiry led by the central bank's inspector general. President Donald Trump has previously criticized the expense of the Fed's renovation projects as excessively high, reflecting an ongoing feud between himself and Powell.
As Powell's term nears its completion, the US Senate is considering Trump's nomination of Kevin Warsh to succeed him. Key Republican Thom Tillis has voiced that his support for Warsh depends on the administration's decision to cease its investigation into Powell. White House spokesman Kush Desai emphasized the need for answers regarding the Federal Reserve's fiscal management and expressed confidence in the swift confirmation of Warsh.
In her remarks, Pirro noted that a criminal investigation could be reignited if warranted by future facts. The Fed declined to comment while the inspector general's office committed to completing its review and sharing results with the public and Congress once finalized.
Trump has publicly called for the Fed to lower interest rates since his return to office, even alluding to the possibility of firing Powell, a notion that could be politically contentious. Amid relentless criticism, including labeling Powell a knucklehead for hesitations on rate cuts, Trump has argued that the cost of Fed renovation should not surpass $3.1 billion, against the Fed's own $2.5 billion estimate.
The renovations entail modernizing the Eccles and 1951 Constitution Avenue buildings to address issues like asbestos and lead contamination—this work being the first major update since the 1930s. Powell, who was appointed by Trump in 2017, emphasized the importance of the Fed's independence in determining monetary policy free from political pressures, a stance he believes is crucial as economic conditions evolve. His term expires on May 15, but he plans to remain until Warsh's confirmation.
As Powell's term nears its completion, the US Senate is considering Trump's nomination of Kevin Warsh to succeed him. Key Republican Thom Tillis has voiced that his support for Warsh depends on the administration's decision to cease its investigation into Powell. White House spokesman Kush Desai emphasized the need for answers regarding the Federal Reserve's fiscal management and expressed confidence in the swift confirmation of Warsh.
In her remarks, Pirro noted that a criminal investigation could be reignited if warranted by future facts. The Fed declined to comment while the inspector general's office committed to completing its review and sharing results with the public and Congress once finalized.
Trump has publicly called for the Fed to lower interest rates since his return to office, even alluding to the possibility of firing Powell, a notion that could be politically contentious. Amid relentless criticism, including labeling Powell a knucklehead for hesitations on rate cuts, Trump has argued that the cost of Fed renovation should not surpass $3.1 billion, against the Fed's own $2.5 billion estimate.
The renovations entail modernizing the Eccles and 1951 Constitution Avenue buildings to address issues like asbestos and lead contamination—this work being the first major update since the 1930s. Powell, who was appointed by Trump in 2017, emphasized the importance of the Fed's independence in determining monetary policy free from political pressures, a stance he believes is crucial as economic conditions evolve. His term expires on May 15, but he plans to remain until Warsh's confirmation.
