Justice Department ends investigation into Federal Reserve Chairman Jerome Powell
The Justice Department will end its investigation into the Federal Reserve and Chairman Jerome Powell, possibly paving the way for a successor to be named.
Sen. Thom Tillis on April 26 welcomed the end of the criminal investigation into the current chairman of the Federal Reserve Board and said he stands ready to support the nomination of Kevin Warsh to the role.
Tillis, a Republican from North Carolina, had denounced the investigation, announced in January, as a politically motivated move by the White House and a threat to the central bank’s independence.
The investigation was ostensibly about cost overruns in the Fed’s renovation projects, but many officials, including Mr. Tillis, believed it was a pretext. President Donald Trump has repeatedly pressured Federal Reserve Chairman Jerome Powell to cut interest rates, but Powell has refused.
“This is a question about whether the Fed can continue to set interest rates based on evidence and economic conditions, or whether monetary policy will instead be guided by political pressure and intimidation,” Powell said in a video recorded at the start of the investigation.
President Trump nominated Warsh, a former Fed director, in January, but Tillis said he would block the confirmation process until the investigation is complete.
On April 24, the Justice Department announced it was closing its investigation and directing the Fed’s inspector general to investigate cost overruns.
“I have been clear from the beginning: The Justice Department’s criminal investigation into Chairman Powell is a serious threat to the Fed’s independence, and it needed to be concluded before I could support Kevin Warsh’s confirmation,” Tillis said in a social media post on April 26.
“I take the Department of Justice at its word. The investigation is closed and any appeal of Judge Boasberg’s decision will be based on legal principles and not for the purpose of reissuing subpoenas,” he added. The investigation will only be resumed if a criminal complaint is filed by the inspector general.
Warsh appeared before the Senate Banking Committee on April 21 as the first step in the confirmation process. Tillis, a member of the committee, used his allotted time to criticize the White House’s pressure tactics.
The Fed’s Monetary Policy Committee is scheduled to meet on April 29th.
