DOJ Drops Powell Probe, Smoothing Path for Warsh to Lead Fed

• The Justice Department is closing its investigation into Federal Reserve Chair Jerome Powell concerning allegations of misleading Congress about renovation costs at the Fed's headquarters.
• This move is anticipated to facilitate the confirmation of Kevin Warsh as the president's pick to lead the central bank, as a Republican senator had previously threatened to block Warsh's nomination due to the ongoing probe.
• The US Attorney for DC announced that the Fed's Inspector General will now scrutinize the project's cost overruns, with the possibility of restarting a criminal investigation if new facts emerge.

The Justice Department has closed its investigation into Federal Reserve Chair Jerome Powell regarding alleged cost overruns on building renovations. This decision is viewed as a significant reversal for the DOJ and is expected to clear the path for Kevin Warsh's confirmation as the next Federal Reserve Chair, resolving a political standoff.