The Justice Department has ended its criminal investigation into Federal Reserve Chair Jerome H. Powell. The inquiry focused on Powell’s oversight of the central bank’s building renovation project.
Prosecutors found no evidence of wrongdoing. The decision removes a major legal cloud hanging over Powell’s tenure.
The probe had threatened to complicate the political landscape. It also raised questions about the transition of power at the Fed.
President Donald Trump has selected Kevin M. Warsh as his nominee for the next Fed chair. The closure of the investigation could now clear a path for Warsh’s Senate confirmation.
Warsh, a former Fed governor, is expected to face scrutiny over his policy views. The end of the Powell inquiry removes one potential distraction from that process.
The investigation had dragged on for months. Its conclusion brings some stability to the central bank’s leadership outlook.
The Justice Department declined to comment further on the decision. Powell’s attorneys expressed satisfaction with the outcome.
