DOJ drops criminal probe into Fed chair Jerome Powell

The Department of Justice said it will drop a criminal probe into Federal Reserve chair Jerome Powell on Friday, a sharp pivot in an unprecedented investigation into the nation's top central banker.Why it matters: It opens the path for President Trump's pick to lead the Fed to be confirmed to the post after a standoff with Sen. Thom Tillis (R-N.C.), who blocked confirmation until the investigation was closed.What they're saying: "I have directed my office to close our investigation as the IG undertakes this inquiry," the U.S. attorney for the District of Columbia, Jeanine Pirro, wrote on X. "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," Pirro wrote."The IG has the authority to hold the Federal Reserve accountable to American taxpayers. 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."Flashback: Powell disclosed in January that he received subpoenas seeking records related to the central bank's multibillion-dollar building renovations.The government was examining whether Powell had committed fraud and lied to Congress about those renovations.