The US justice department is dropping its investigation into the Federal Reserve chairman, Jerome Powell, over alleged building cost overruns. US Attorney Jeanine Pirro stated that instead, there would be an internal investigation led by the central bank's inspector general.
President Donald Trump has long criticized the costs associated with the Fed's building renovations, accusing them of being excessively high, reflecting a continuing tense relationship with Powell.
As Powell's term approaches its end, the US Senate is currently deliberating over Trump's nomination of Kevin Warsh as his replacement. Notably, a key Republican, Thom Tillis, has withheld support for Warsh unless the investigation into Powell is dropped.
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, emphasized White House spokesman Kush Desai.
There is a belief within the White House that the Senate will confirm Warsh swiftly to restore confidence in the Fed's decision-making.
Trump has previously expressed the urgency for the Fed to reduce interest rates and has hinted at Powell's potential dismissal should he not resign as his term concludes. The controversial investigation had previously involved allegations that Powell mismanaged renovation costs estimated at $3.1 billion, significantly above the Fed's earlier $2.5 billion forecast, a matter that Powell attempted to address directly in January after receiving subpoenas from the justice department.
The renovation of the Eccles and Constitution Avenue buildings marks a historic overhaul and modernization, critical since their initial construction in the 1930s, involving necessary repairs to remove hazardous materials.
Despite the pressures and controversies, Powell is expected to remain in his role until a successor is confirmed.
President Donald Trump has long criticized the costs associated with the Fed's building renovations, accusing them of being excessively high, reflecting a continuing tense relationship with Powell.
As Powell's term approaches its end, the US Senate is currently deliberating over Trump's nomination of Kevin Warsh as his replacement. Notably, a key Republican, Thom Tillis, has withheld support for Warsh unless the investigation into Powell is dropped.
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, emphasized White House spokesman Kush Desai.
There is a belief within the White House that the Senate will confirm Warsh swiftly to restore confidence in the Fed's decision-making.
Trump has previously expressed the urgency for the Fed to reduce interest rates and has hinted at Powell's potential dismissal should he not resign as his term concludes. The controversial investigation had previously involved allegations that Powell mismanaged renovation costs estimated at $3.1 billion, significantly above the Fed's earlier $2.5 billion forecast, a matter that Powell attempted to address directly in January after receiving subpoenas from the justice department.
The renovation of the Eccles and Constitution Avenue buildings marks a historic overhaul and modernization, critical since their initial construction in the 1930s, involving necessary repairs to remove hazardous materials.
Despite the pressures and controversies, Powell is expected to remain in his role until a successor is confirmed.
