Justice Department drops criminal investigation into Fed Chair Jerome Powell and refers renovation review to Fed inspector general

What was Powell being investigated over?

The criminal inquiry focused on alleged cost overruns in renovations at the Federal Reserve’s Washington headquarters, and some reporting said prosecutors were examining possible fraud-related issues tied to the project and Powell’s congressional testimony about it Aol,NY Post,Yahoo News.

Why does dropping the investigation matter for Kevin Warsh?

It matters because Republican Sen. Thom Tillis had said he would not allow Warsh’s confirmation to move forward while the administration was still pursuing Powell, making the investigation a practical obstacle to Trump’s effort to install a new Fed chair NYT,Corriere della Sera,CNBC.

Is the matter fully over?

Not entirely. The Justice Department’s criminal probe has been closed, but the Fed’s inspector general is continuing to examine the renovation costs, and Pirro said she could reopen a criminal case if the facts later warrant it tagesschau.de,Business Insider,CNBC.