• Justice Department drops investigation into Jerome Powell over Fed renovations
• Decision removes major obstacle to Kevin Warsh’s nomination as Fed chair
• Senator Thom Tillis reverses opposition and backs Warsh confirmation
• Probe had focused on alleged misstatements to Congress about project costs
• Elizabeth Warren warns pressure on the Fed could still continue
• Trump continues criticism of Powell’s interest rate decisions 

The U.S. Department of Justice has formally dropped its investigation into Jerome Powell, a decision that appears to have reshaped the political landscape surrounding the future leadership of the Federal Reserve.

The announcement was made by Jeanine Pirro, who confirmed the move in a public statement, signaling an end to a probe that had cast a long shadow over the central bank and its chair.

By the end of the weekend, the implications were already being felt on Capitol Hill. Thom Tillis, who had previously pledged to oppose any Federal Reserve nominee while the investigation remained open, reversed his position.

“I take the Department of Justice at its word,” Tillis said in a statement. “With these assurances, I look forward to supporting Kevin Warsh’s confirmation. He is an outstanding nominee, and it is time for the Federal Reserve to move beyond this distraction and return its full attention to its mission.”

Warsh, a former Federal Reserve governor, has been nominated to succeed Powell when his term expires in mid-May.

His confirmation process had been clouded by the ongoing investigation, which threatened to stall his path to approval in the Senate Banking Committee.

With Democrats widely expected to oppose the nomination, Tillis’ previous stance had the potential to block Warsh’s advancement to a full Senate vote.

At the center of the investigation were questions surrounding cost overruns linked to renovations at Federal Reserve buildings. Prosecutors had issued subpoenas as part of an inquiry into whether Powell had misled Congress about the projects.

Powell, however, maintained that the probe was politically motivated. He argued that it was designed to pressure him into stepping aside, clearing the way for new leadership more aligned with White House preferences on interest rates.

A judge reviewing the matter was also reported to have raised concerns about the underlying motivations behind the investigation.

The decision to end the probe does not entirely close the chapter. Pirro indicated that oversight of the renovation projects would now fall to the Federal Reserve’s inspector general, who has been tasked with conducting a detailed review.

“The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said, adding that she expects a comprehensive report to address the concerns that prompted the investigation.

She also warned that the Justice Department could reopen a criminal inquiry if new evidence emerges.

The move has drawn mixed reactions from lawmakers. Elizabeth Warren criticized the decision, arguing that the threat of renewed investigation continues to hang over the central bank.

“Anyone who believes Donald Trump’s corrupt scheme to take over the Fed is over is fooling themselves,” Warren said, urging the Senate to halt consideration of Warsh’s nomination.

President Donald Trump has been a vocal critic of Powell, particularly over the pace of interest rate decisions. He has repeatedly called for more aggressive rate cuts and has suggested that Powell’s leadership has hindered economic performance.

Speaking recently, Trump indicated that further scrutiny of the renovation projects could still be warranted.

“You have to find out what went wrong,” he said, before again criticizing Powell’s record on interest rates. “On top of that, he’s been terrible on interest rates.”

As the nomination process for Warsh moves forward, the episode underlines the increasingly complex relationship between political leadership and central bank independence.

While the end of the investigation removes an immediate barrier, questions about influence, oversight, and the future direction of monetary policy are likely to remain at the forefront of debate in Washington.