The US Justice Department is dropping its investigation into Federal Reserve Chairman Jerome Powell over alleged overspending on renovations. Attorney Jeanine Pirro confirmed that an internal investigation will now be conducted by the central bank's inspector general.
President Donald Trump has repeatedly stated that the renovation costs of the Fed's buildings were unreasonably high, highlighting a long-standing conflict with Powell. As Powell's term approaches its end, the Senate is weighing Trump's nominee for his replacement, Kevin Warsh, with key Republican Thom Tillis indicating his support is contingent on the dropping of the investigation into Powell.
American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement, and the Office of the Inspector General's more powerful authorities best position it to get to the bottom of the matter, noted White House spokesperson, Kush Desai.
While the investigation will not move forward, Pirro emphasized her willingness to restart criminal probes if new evidence arises. The Federal Reserve declined to comment on the decision.
As the Fed revisits its renovation plans, which date back to the 1930s, Powell faces heightened scrutiny over expenses that many view as necessary improvements to the buildings. Powell's current term ends on May 15, but he plans to stay in position until Warsh is confirmed by the Senate.
Both Trump and Powell have clashed over monetary policy decisions, with Trump previously labeling Powell a knucklehead as frustrations mounted over the Fed's refusal to adjust interest rates in line with Trump's preferences. This ongoing dynamic showcases the delicate balance between political influence and the independence of the Federal Reserve.
President Donald Trump has repeatedly stated that the renovation costs of the Fed's buildings were unreasonably high, highlighting a long-standing conflict with Powell. As Powell's term approaches its end, the Senate is weighing Trump's nominee for his replacement, Kevin Warsh, with key Republican Thom Tillis indicating his support is contingent on the dropping of the investigation into Powell.
American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement, and the Office of the Inspector General's more powerful authorities best position it to get to the bottom of the matter, noted White House spokesperson, Kush Desai.
While the investigation will not move forward, Pirro emphasized her willingness to restart criminal probes if new evidence arises. The Federal Reserve declined to comment on the decision.
As the Fed revisits its renovation plans, which date back to the 1930s, Powell faces heightened scrutiny over expenses that many view as necessary improvements to the buildings. Powell's current term ends on May 15, but he plans to stay in position until Warsh is confirmed by the Senate.
Both Trump and Powell have clashed over monetary policy decisions, with Trump previously labeling Powell a knucklehead as frustrations mounted over the Fed's refusal to adjust interest rates in line with Trump's preferences. This ongoing dynamic showcases the delicate balance between political influence and the independence of the Federal Reserve.
