Overview
- The Justice Department, which announced the closure Friday, said the Fed's watchdog will scrutinize the renovation spending and that prosecutors could reopen the case if new facts arise.
- The inquiry examined whether Powell misled about the price of renovations at the Federal Reserve’s headquarters, with costs described as running into the billions of dollars.
- A federal judge earlier threw out January subpoenas to Powell and the Fed, saying there was essentially no evidence of criminal conduct.
- The decision clears a key obstacle for Senate consideration of Trump-backed nominee Kevin Warsh after Republican Sen. Thom Tillis threatened to block the process until the case was closed.
- Powell’s term ends May 15, and the inspector general review is a watchdog check that can issue findings on spending even when prosecutors bring no charges.