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US Drops Probe Into Fed Chair Powell
The US Justice Department dropped its probe into Federal Reserve chair Jerome Powell on Friday. The probe was about building renovation costs at the Federal Reserve.
President Trump had accused Powell of improper cost overruns. That accusation led to the probe.
The dismissal is expected to clear the way for Kevin Warsh's Senate confirmation. Warsh is Trump's pick to replace Powell as Fed chair.
A Republican senator had blocked Fed nominees until the probe was dropped. But the matter is not fully closed.
US Attorney Jeanine Pirro said she will restart a criminal probe if facts support it. The case is now being handed to the Federal Reserve's Inspector General.
That office had reviewed the renovation project since July 2025 and found no wrongdoing. Powell's term as Fed chair ends on May 15. Warsh is expected to take over after that.
Klear Note — The Federal Reserve controls US interest rates and money supply. The Fed chair is one of the most powerful economic positions in government.
Key Terms 5
- Federal Reserve
- The US central bank that controls interest rates and money supply
- Fed chair
- The leader of the Federal Reserve bank
- Senate confirmation
- A Senate vote to approve someone for an important government role
- Inspector General
- An official who checks for wrongdoing inside a government body
- cost overruns
- When a project costs more money than planned