The US Department of Justice has decided to end its investigation into Federal Reserve Chairman Jerome Powell. The probe was linked to rising costs in a major building renovation project.
Instead of continuing the federal investigation, US Attorney Jeanine Pirro confirmed that the matter will now be reviewed internally. The Federal Reserve’s inspector general will handle the inquiry.
Internal Review to Replace Federal Investigation
This shift means the central bank will examine its own spending. Officials believe the inspector general has the authority to carry out a deeper and more focused review.
The decision also comes during ongoing political tension. Former President Donald Trump has repeatedly criticized Powell over the renovation expenses.
Dispute Over Rising Renovation Costs
The Federal Reserve is upgrading two historic buildings, the Eccles Building and 1951 Constitution Avenue. These structures have not undergone major work since the 1930s.
The project includes essential safety improvements. Workers are removing asbestos and lead contamination. Officials say these updates are necessary to meet modern health standards.
However, the total cost has sparked debate. Trump claims the project could reach $3.1 billion. In contrast, the Federal Reserve estimates the cost at around $2.5 billion.
The central bank argues that the upgrades will reduce long term expenses. They believe the improvements will lead to better efficiency and lower maintenance costs in the future.
Political Pressure and Leadership Changes
Powell’s term as Federal Reserve chairman is nearing its end. Meanwhile, the US Senate is reviewing Trump’s nominee, Kevin Warsh, as a possible replacement.
Republican Senator Thom Tillis has raised concerns about the situation. He has not supported Warsh’s nomination unless the investigation into Powell is dropped.
This political pressure appears to have played a role in the Justice Department’s decision.
White House Response
White House spokesman Kush Desai stated that taxpayers deserve clear answers. He added that the inspector general is better positioned to uncover the truth behind the spending concerns.
