The U.S. Department of Justice said on the 24th (local time) it will end its probe into Federal Reserve Chair Jerome Powell over alleged excessive expenditure on the Fed headquarters renovation expense. With that, confirmation of Kevin Warsh, nominated as Powell's successor, is expected to pick up speed.
Janine Pirro, the U.S. attorney for Washington, D.C., who is leading the investigation into Chair Powell, said on X that "the Fed's inspector general will investigate the issue of excessive expenditure on the headquarters renovation," adding, "We were directed to close our probe while this review proceeds."
She added, "If we determine that factual development is needed, we will not hesitate to resume the criminal investigation."
The Department of Justice has continued its investigation into Chair Powell since last year over allegations of excessive expenditure related to the Fed headquarters renovation expense. Some interpreted the probe as an effort by President Donald Trump to pressure Powell for not acceding to calls for an interest rate cut.
With the Department of Justice halting its investigation into Chair Powell, the Senate confirmation process for Warsh, nominated in January as the next Fed chair, is also expected to gain momentum.
Some Republican members of the Senate Banking Committee, which has jurisdiction, criticized the Department of Justice's probe of Powell and maintained they would oppose confirming Warsh until the matter was resolved.
Accordingly, a confirmation hearing for Warsh was held on the 21st, but the timing of a confirmation vote remained unclear.
With Powell's term set to end on May 15, the White House and Republican leadership are expected to complete the confirmation process before then and push to appoint Warsh.