DOJ Ends Powell Probe, Clearing Path for Warsh at the Fed

The Justice Department has dropped its criminal investigation into Fed Chair Jerome Powell and directed the Fed’s Inspector General to finish a separate review of cost overruns in the Fed’s Washington, D.C. headquarters renovation, a move that could ease the confirmation path for President Trump’s pick to lead the Fed, Kevin Warsh. Renovation costs have risen to about $2.5 billion due to design changes, materials, and unforeseen conditions. Powell’s term as chair ends in May, and while Warsh seeks Senate approval, Republican concerns tied to the probe have been a political hurdle; the White House says it is confident Warsh will be confirmed.