Trump administration files investigation against Fed president

On January 11, Powell reported that the DOJ had launched an investigation against him over alleged irregularities in the renovation of Fed buildings.

According to information from the Associated Press (AP), Pirro said he closed the investigations because the Fed inspector general will analyze the case.

The filing is a maneuver by the Donald Trump administration to get the US Senate to confirm the name of Kevin Warsh, appointed by the president in January, to succeed Powell as president of the US central bank.

Senators from the Republican Party, Trump’s party, had been opposed to voting on Warsh’s confirmation until the investigation against Powell was completed by the DOJ. With the archiving, this barrier was broken down.

According to the AP, a prosecutor working on the case admitted in a closed-door hearing in March that the DOJ had not yet found any evidence of a crime against Powell, and a judge later nullified subpoenas issued against the Fed.

Since his return to the White House in January last year, Trump has been demanding that the American central bank make aggressive interest rate cuts and criticizing Powell.

In response, the current Fed president, whose term ends on May 15, said that the investigation against him would have a political basis.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will be best for the public, rather than following the president’s preferences,” he said in a statement released in January.