DOJ drops Powell probe

DOJ ends Fed renovations, Powell investigation

The Department of Justice (DOJ) announced Friday it was dropping its criminal investigation into Federal Reserve Chair Jerome Powell and his handling of renovations at the central bank.

The announcement from Jeanine Pirro, U.S. attorney for the District of Columbia, likely clears the way for the confirmation of Kevin Warsh, the former Fed board member nominated by Trump to replace Powell as Fed chair.

In a Friday post on social media, Pirro said she asked the Fed inspector general (IG) to investigate Powell and the bank’s renovations, and would be closing the criminal investigation the DOJ launched in December.

“The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas,” Pirro wrote.

“Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.”

The end of the criminal probe into the Fed and Powell comes after retiring Sen. Thom Tillis (R-N.C.) reiterated last week that he would not support any Trump nominee to the bank until the DOJ wrapped up its investigation, which he dismissed as a baseless political pressure campaign.

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Key business and economic news with implications this week and beyond:

Moreno introduces resolution banning senators from prediction markets

Sen. Bernie Moreno (R-Ohio) introduced a resolution on Friday that would ban senators from participating in prediction markets amid concerns about potential insider trading on the platforms.

Trump extends Jones Act waiver in bid to lower fuel prices

The Trump administration announced on Friday it was issuing a 90-day extension to the Jones Act waiver, which requires shipping between U.S. ports to be conducted by American ships, in an effort to lower fuel prices. 

O’Leary: Possible Spirit Airlines bailout ‘really bad idea’

Millionaire investor Kevin O’Leary is not sold on the Trump administration’s reported plan to bail out Spirit Airlines, calling it a “really bad idea.”

Branch out with more stories from the day:

Average US long-term mortgage rate slips to 6.23%, its third weekly drop

The average long-term U.S. mortgage rate dropped for the third week in a row, easing borrowing costs …

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The death of the American Dream is now official 

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You’re all caught up. See you next week! 

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