Justice Department Ends Probe on Powell, Paves Way for Warsh

The Justice Department announced the closure of its investigation into Federal Reserve Chair Jerome Powell, a move seen as removing a significant barrier to the confirmation of Kevin Warsh as the central bank's new leader.

In a statement on Friday, U.S. Attorney Jeanine Pirro, known for her close ties with former President Donald Trump, revealed she had redirected oversight to the Federal Reserve's internal watchdog, the Office of Inspector General, to look into cost overruns linked to renovations at the Fed's Washington headquarters. Pirro assured that the Inspector General has the power to scrutinize the Federal Reserve's financial operations on behalf of American taxpayers.

She expressed confidence that the investigation would yield a thorough report that would address the issues leading to her office's initial subpoenas. Officials from the Federal Reserve and the White House were unavailable for immediate comment.

(With inputs from agencies.)