The U.S. Department of Justice dropped its criminal investigation into the Federal Reserve (Fed) and its Chair, Jerome Powell.
"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," U.S. Attorney for D.C. Jeanine Pirro said in a post on X.
"Accordingly, I have directed my office to close our investigation as the IG [Inspector General] undertakes this inquiry." Pirro affirmed, assuring that she would "not hesitate to restart a criminal investigation should the facts warrant doing so."
The announcement comes after Sen. Thom Tillis (R-N.C.) vowed during a Senate committee confirmation hearing to withhold his support for Kevin Warsh – President Donald Trump’s nomination to replace Powell – until the probe into Powell is closed.
Details on the Criminal Investigation
The criminal probe into the Fed and Powell focused on a renovation project of two historic buildings located at the central bank’s headquarters in Washington, D.C.
According to CNBC, the Fed originally estimated the cost for the project at roughly $1.9 billion. However, the cost increased to around $2.5 billion in the years following the first estimate.
The Fed argued that the increase in costs arose from unforeseen changes to the plans, as well as increased costs of raw materials, equipment, and labor. The central bank also revealed that it uncovered more asbestos than expected and discovered a sinkhole.
Statements from the White House
“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,” White House spokesman Kush Desai said in a statement.
“The White House remains as confident as before that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman to finally restore competence and confidence in Fed decision-making,” Desai added.
