• The US Justice Department has dropped its criminal investigation into Fed Chair Jerome Powell.
• This closure clears the way for Kevin Warsh's confirmation as Powell's successor.
• The investigation centered around alleged cost overruns in renovations at the Fed's headquarters.
• The Fed's inspector general will now examine the renovations instead.
• Republican Senator Thom Tillis had suspended support for Warsh until the investigation was resolved.

The U.S. Justice Department has officially ended its investigation into Federal Reserve Chair Jerome Powell, effectively removing a key hurdle for the confirmation of President Trump's nominee, Kevin Warsh, according to CBS News and BBC. U.S. Attorney Jeanine Pirro announced that the focus will shift to an internal inquiry led by the Fed's inspector general regarding the extensive building renovations at the central bank's headquarters.

The investigation has been characterized by a lack of evidence for months, with a judge deeming the prosecutors' justification for subpoenas issued to the Federal Reserve as "thin and unsubstantiated," according to South China Morning Post and Los Angeles Times. Moreover, during a closed-door hearing, a prosecutor admitted that "no evidence" was found to support any claims of criminal conduct against Powell.

The closure of the inquiry may expedite Warsh's confirmation, with Senator Thom Tillis having previously stated he would not support the nominee while the investigation was ongoing, reports Channel News Asia and NPR. Warsh, who previously held a position at the Fed, faces scrutiny over his independence from Trump and transparency regarding his financial matters.

In his testimony, Warsh asserted that he had never committed to any specific interest rate decisions, reinforcing his intent to act independently if confirmed. This statement came amid Trump's public expectations for interest rate adjustments, noted by Le Monde and Al Jazeera.