The Department of Justice has quietly abandoned its criminal probe into Federal Reserve Chair Jerome Powell over massive cost overruns tied to the renovation of the Feds Washington, DC, headquarters, shifting scrutiny to the central banks own watchdog.
According to The Post Millennial, US Attorney for DC Jeanine Pirro announced that internal oversight would now take the lead on the ballooning project, which has run into the billions at taxpayer expense. 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," Pirro said in a post to X.
"The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas. Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so," she added.
The DOJs move removes a key procedural obstacle to President Donald Trumps nominee for Fed Chair, Kevin Warsh, whose confirmation has been stalled in the Senate. Republican Senator Thom Tillis of North Carolina has denounced the Powell probe as bogus, effectively blocking a vote while the investigation remained open.
The White House framed the shift as a way to leverage stronger oversight tools while keeping pressure on the Feds leadership. White House spokesman Kish Desai said in a statement, "American taxpayers deserve answers about the Federal Reserves fiscal mismanagement, and the Office of the Inspector Generals more powerful authorities best position it to get to the bottom of the matter.
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