Controversy Unveiled: Fed Chair Investigation Dropped amid Political Pressure

In a politically charged decision, U.S. Attorney Jeanine Pirro discontinued the criminal investigation into Federal Reserve Chair Jerome Powell, initially launched by the Trump administration. Pirro has instead requested the Fed's internal watchdog to examine cost overruns in the renovation of the Fed's headquarters.

The move comes amid suspicions that the original probe was politically motivated, intended to coerce Powell into lowering interest rates or resigning. The decision has also cleared the path for Kevin Warsh's Senate confirmation as Powell's successor, mitigating the tensions within the central bank.

Republican Senator Thom Tillis welcomed the conclusion of the investigation while advocating for due process. The shift in focus to the Fed's internal review reflects an effort to re-establish credibility and transparency in the ongoing scrutiny of the central bank's actions.

(With inputs from agencies.)