DOJ Drops Criminal Probe on Fed Chair Powell, Clears Warsh Confirmation

AI Summary

The Department of Justice (DOJ) has dropped its criminal investigation of Federal Reserve Chair Jerome Powell, enabling the Senate to proceed with the confirmation of Kevin Warsh. U.S. Attorney Jeanine Pirro announced the decision on social media three days after Warsh's Senate Banking Committee testimony. The investigation, which had faced challenges due to a federal judge's ruling, was initially focused on cost overruns in a multi-billion-dollar renovation of the Federal Reserve's headquarters. The Federal Reserve's inspector general will now conduct a review of the renovation project, with results expected to be made public. This development may impact market perception of Federal Reserve leadership and policy direction.