• The US Justice Department has closed its investigation into Jerome Powell.
• This decision eliminates a key obstacle to the confirmation of Kevin Warsh as the new Fed Chair.
• US Attorney Jeanine Pirro stated that the investigation into building cost overruns is now under the Fed's inspector general.
• Senator Thom Tillis had withheld support for Warsh pending the resolution of the investigation.
• The probe had faced criticism for lacking evidence of any wrongdoing by Powell.

The US Justice Department announced it is ending its investigation into Federal Reserve Chair Jerome Powell. This decision is expected to clear a significant roadblock for the confirmation of Kevin Warsh, President Trump's nominee to lead the central bank, as Powell's term is set to conclude on May 15. US Attorney Jeanine Pirro confirmed that the Fed’s inspector general will handle an inquiry into the central bank's renovation project, which has been scrutinized for alleged cost overruns, according to CBS News and Los Angeles Times.

The investigation had previously been a point of contention in the Senate, with Senator Thom Tillis indicating he would not support Warsh’s nomination unless the matter was resolved. Pirro emphasized the authority of the inspector general to hold the Fed accountable to taxpayers, stating, “I expect a comprehensive report in short order,” according to BBC and Channel News Asia.

The decision to close the investigation comes after months of scrutiny, during which judges indicated there was “essentially zero evidence” linking Powell to any criminal activity. Judge James Boasberg had quashed subpoenas issued to the Fed, calling the prosecutors' justifications “thin and unsubstantiated.” The investigation had included unannounced inspections, which faced criticism from defense lawyers as improper, noted in coverage by NPR and South China Morning Post.