politics
DOJ ends Powell probe, lifts hurdle for Trump’s Fed chair nominee Warsh
President Donald Trump's nomination of Kevin Warsh to replace Federal Reserve Chair Jerome Powell had been effectively blocked because of the investigation.
TL;DR
- The Department of Justice has dropped its criminal investigation into Federal Reserve Chair Jerome Powell.
- This decision lifts a hurdle for the Senate confirmation of Kevin Warsh, President Trump's nominee to replace Powell.
- The investigation has been transferred to the Federal Reserve's inspector general, who is already examining cost overruns in the central bank's headquarters renovation.
- Senator Thom Tillis had previously placed a hold on Warsh's confirmation pending the end of the criminal investigation.
- Powell and others had suggested the probe was politically motivated to pressure the Fed into lowering interest rates.
- Senator Elizabeth Warren criticized the move as a political tactic to install Warsh and mentioned an ongoing probe into Governor Lisa Cook.
- White House officials and Senator Tim Scott expressed confidence that the Inspector General's review will address fiscal mismanagement concerns and that Warsh's confirmation will restore confidence in the Fed.