Overview
- The Justice Department, which closed the case Friday, asked the Fed’s inspector general to examine cost overruns tied to the central bank’s headquarters renovation.
- The decision removes the committee roadblock set by Sen. Thom Tillis, though Kevin Warsh still needs votes in the Senate Banking Committee and the full Senate to be confirmed as chair.
- A federal judge had earlier quashed DOJ subpoenas to the Fed, with Chief Judge James Boasberg saying prosecutors showed “essentially zero evidence” that Jerome Powell committed a crime.
- The renovation budget for the Fed’s Washington buildings climbed from about $1.9 billion to roughly $2.5 billion, which spurred the inquiry into whether Powell misled Congress about the project.
- Democrats warn the step keeps political pressure on the central bank, while the timeline now points to quick committee action with Powell’s chair term ending May 15 and a June policy meeting on deck.