The Department of Justice announced Friday that it is closing its criminal investigation into Federal Reserve Chair Jerome Powell. The probe, which centered on allegations of fraud and false statements to Congress regarding the central bank's multibillion-dollar building renovations, has been dropped in favor of an internal review by the Federal Reserve's Inspector General.
The decision clears a significant hurdle for Powell's confirmation to lead the Fed, which had been stalled by Sen. Thom Tillis (R-N.C.). Tillis had blocked the nomination pending the outcome of the investigation.
'I have directed my office to close our investigation as the IG undertakes this inquiry,' said U.S. Attorney Jeanine Pirro in a statement. 'The IG has the authority to hold the Federal Reserve accountable to American taxpayers.'
The Inspector General will now scrutinize cost overruns tied to the Fed's building renovations, which have drawn criticism for their impact on taxpayers. Powell disclosed in January that he had received subpoenas seeking records related to the project.
The closure of the criminal probe marks a pivotal moment for the Fed, which has faced growing scrutiny over its fiscal management and transparency. The IG's findings are expected to provide clarity on the renovation costs and address lingering concerns about the process.