U.S. DOJ Closes Investigation into Fed Chair Powell

The U.S. Department of Justice has concluded its investigation into Federal Reserve Chair Jerome Powell.

The case was related to an inquiry into cost overruns for the remodeling of the Fed's Washington headquarters. Republican Senator Tom Tillis had previously blocked all Fed-related confirmation proceedings until the Justice Department concluded its investigation into Chairman Powell, effectively halting the Senate confirmation of Kevin Wash, who was nominated by President Donald Trump as Fed Chair. The Justice Department's decision to close the investigation removes Senator Tillis's grounds for opposition. The White House stated that the Senate would confirm Wash's nomination.

The Justice Department's investigation into Chairman Powell focused on the cost overruns for the Fed headquarters' remodeling and Powell's testimony before Congress last year. A federal judge blocked the enforcement of a subpoena against the Federal Reserve Board, ruling that it was issued for the improper purpose of pressuring Chairman Powell regarding interest rate cuts or resignation. The prosecutor had shown an intention to continue the investigation through appeals even immediately before the conclusion of the probe.