US justice department drops probe into Fed chairman Jerome Powell

The US justice department is dropping its investigation into the Federal Reserve chairman, Jerome Powell, over alleged building cost overruns.US Attorney Jeanine Pirro said instead there would be an internal investigation led by the central bank's inspector general.President Donald Trump has said the cost of the Fed's building renovations were too high, as part of a long-standing feud with Powell.Powell's term is nearing its end and the US Senate is considering Trump's nominee for his replacement, Kevin Warsh. A key Republican, Thom Tillis, has withheld his support for Warsh unless the Trump administration would drop its investigation into Powell."American taxpayers deserve answers about the Federal Reserve's fiscal mismanagement, and the Office of the Inspector General's more powerful authorities best position it to get to the bottom of the matter," said White House spokesman Kush Desai in a statement. "The White House remains as confident as before that the Senate will swiftly confirm Kevin Warsh as the next Federal Reserve Chairman to finally restore competence and confidence in Fed decision-making."In her post on X, Pirro said she would not "hesitate to restart a criminal investigation should the facts warrant doing so". The Fed declined to comment.