Donald Trump has made a decision about Jerome Powell. The new head of the Fed is in the final stretch
The investigation against Jerome Powell, the head of the US central bank, has been discontinued, Jeanine Pirro, the head of the federal prosecutor's office in Washington, announced on Friday.
Pirro said an internal investigation would instead be conducted, led by the central bank's inspector general.
Donald Trump last year said the costs of renovating Federal Reserve buildings were too high, part of a long-running dispute with Powell.
Powell's term is coming to an end, and the U.S. Senate is currently considering Trump's nominee Kevin Warsh as his successor.
But key Republican Thom Tillis refrained from supporting the nomination until the investigation is complete.
“American taxpayers deserve answers about the Federal Reserve's mismanagement, and the Office of Inspector General, as the more empowered body, is best placed to get to the bottom of the matter,” White House spokesman Kush Desai said in a statement.
“The White House remains confident that the Senate will quickly confirm Kevin Warsh as Federal Reserve chairman to finally restore competence and confidence in decision-making at the Federal Reserve.”
Trump called on the Fed to cut interest rates when he returned to power last year, then began floating the idea of firing Powell — a move that some say may be illegal.
Powell said he believed the investigation was launched because of Trump's anger over the Fed's refusal to lower interest rates despite repeated pressure from the president.
Powell publicly and forcefully opposed a US president for the first time, warning that the independence of the US central bank was at risk.
