Justice Department Clears Powell: Paving the Way for Warsh

The Justice Department has officially ended its probe into Federal Reserve Chair Jerome Powell, a development that removes a significant barrier to confirming Kevin Warsh as the central bank's new leader. U.S. Attorney Jeanine Pirro confirmed the decision on Friday, redirecting focus to the Fed's internal affairs.

Pirro, known for her alliance with President Donald Trump, has asked the Federal Reserve's Office of Inspector General to investigate cost overruns associated with renovations at the Fed's Washington headquarters. In a social media post, Pirro assured that the Inspector General possesses the authority necessary to hold the Fed accountable to American taxpayers and emphasized her expectation of a comprehensive report promptly.

The probe into Powell caused a delay in Warsh's confirmation following Republican Senator Tillis's threat to block all nominees. This contentious issue became a focal point of the Justice Department's alleged targeting of Trump's critics. Recently, a judge struck down subpoenas intended for the Fed's Board, citing improper motives.

(With inputs from agencies.)