DOJ Ends Investigation Into Fed Chair Powell After Republican Backlash

President Donald Trump is backing down from his vendetta against Jerome Powell.The Justice Department announced Friday that it is dropping its criminal investigation into the Federal Reserve chief over the renovation of the central bank’s Washington, D.C., headquarters.“This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns—in the billions of dollars—that have been borne by taxpayers,” U.S. Attorney for D.C. Jeanine Pirro posted on X. “Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry.”“I will not hesitate to restart a criminal investigation should the facts warrant doing so,” Pirro added, appearing to suggest that there was not a factual basis for the previous investigation.Powell’s term expires on May 15, and Trump’s nomination of Kevin Warsh to fill the position has faced roadblocks, with Republican Senator Thom Tillis threatening to hold up Warsh’s confirmation over the trumped-up investigation of Powell. Tillis’s vote against Warsh would have been enough to sink his nomination.Trump has threatened to fire Powell for months, citing the made-up headquarters scandal and complaining about interest rates not being lowered enough. Earlier this month, Trump said he would fire Powell if he stayed past his term, even though Powell is legally allowed to remain as chair “pro tempore” until Congress confirms his replacement.At his Senate confirmation hearings earlier this week, Warsh dodged questions about his financial ties to Jeffrey Epstein and whether Trump had discussed lowering interest rates with him. While a significant roadblock to his confirmation has just been lifted, those questions could still deter his appointment. This story has been updated.