Overview
- Federal prosecutors ended the criminal investigation Friday, shifting the Fed headquarters renovation review to the central bank’s inspector general with the option to reopen the case if new facts arise.
- Sen. Thom Tillis had vowed to block Kevin Warsh in committee until the probe ended, and the closure now clears a key hurdle for a vote on Trump’s nominee.
- In March, Chief Judge James E. Boasberg quashed subpoenas tied to the case and said prosecutors had shown essentially zero evidence, fueling concern that the inquiry threatened the Fed’s independence.
- The inspector general said it has been examining the renovation and its rising price tag, which moved from roughly $1.9 billion to about $2.5 billion for the Fed’s Eccles Building and its adjacent facility.
- Powell’s chair term ends May 15, and he previously said he would not leave the Fed’s board until the DOJ matter was well and truly over, setting up a tight Senate timeline and potential policy uncertainty until a successor is confirmed.