The US justice department is dropping its investigation into the Federal Reserve chairman, Jerome Powell, over alleged building cost overruns. US Attorney Jeanine Pirro announced that an internal investigation will instead be conducted by the central bank's inspector general. This follows ongoing criticism from President Donald Trump, who has accused the Fed of overspending on renovations whose costs he deems excessive. The renovation project, affecting the Eccles Building and 1951 Constitution Avenue, is the first significant upgrade since their construction in the 1930s and includes essential improvements such as the removal of asbestos.
As Powell's term approaches its conclusion, the Senate is deliberating over Trump's pick to succeed him, Kevin Warsh. However, key Republican Senator Thom Tillis has indicated he would withhold his support unless the inquiry into Powell was dropped. In response to the shift in investigation strategy, White House spokesman Kush Desai emphasized the importance of accountability and the inspector general’s authority to uncover potential fiscal mismanagement.
Pirro also stated she would act decisively should the facts necessitate a revival of the criminal investigation. The Federal Reserve has yet to comment on the development, but the inspector general's office has affirmed their commitment to transparency and indicated they're progressing on their review.
The ongoing back-and-forth between Trump and Powell has underscored the contentious relationship between the independent central bank and the executive branch. Powell, nominated by Trump in 2017, has expressed grave concerns about maintaining the Federal Reserve's independence in light of the pressures exerted by the President, particularly in regards to monetary policy and interest rates.
As Powell's term approaches its conclusion, the Senate is deliberating over Trump's pick to succeed him, Kevin Warsh. However, key Republican Senator Thom Tillis has indicated he would withhold his support unless the inquiry into Powell was dropped. In response to the shift in investigation strategy, White House spokesman Kush Desai emphasized the importance of accountability and the inspector general’s authority to uncover potential fiscal mismanagement.
Pirro also stated she would act decisively should the facts necessitate a revival of the criminal investigation. The Federal Reserve has yet to comment on the development, but the inspector general's office has affirmed their commitment to transparency and indicated they're progressing on their review.
The ongoing back-and-forth between Trump and Powell has underscored the contentious relationship between the independent central bank and the executive branch. Powell, nominated by Trump in 2017, has expressed grave concerns about maintaining the Federal Reserve's independence in light of the pressures exerted by the President, particularly in regards to monetary policy and interest rates.
