Federal prosecutors are abandoning a criminal case against Federal Reserve chairman Jerome Powell that was demanded by Donald Trump in an apparent effort to clear the way for the president’s pick to lead the powerful global economic institution.
Trump pushed for a criminal probe over renovations at the central bank’s home in Washington, D.C., while the president demanded Powell’s removal over his refusal to lower interest rates.
The president’s choice to lead the Fed, Kevin Warsh, faced a key obstacle for his confirmation in the Senate, where Republican Thom Tillis vowed to vote against his nomination unless the Justice Department backed off the probe.
U.S. Attorney for Washington, D.C. Jeanine Pirro announced Friday that she has directed her office to close the investigation.
She said the office of Inspector General for the Federal Reserve has instead taken up an investigation into building costs overruns.
“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” she said. “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.”
She said she will “not hesitate to restart a criminal investigation should the facts warrant doing so.”
This is a developing story
