Justice Department drops criminal probe of Fed chair Powell

Main Idea: The Justice Department has ended its criminal probe of Fed Chair Jerome Powell, removing a major obstacle to Kevin Warsh’s possible confirmation as Powell’s successor.

Key Points:

• The Justice Department said its investigation into the Federal Reserve’s building renovation would end, with the Fed’s inspector general handling the review instead.
• The probe had delayed Warsh’s path to confirmation because one Republican senator had said he would oppose a vote until the case was resolved.
• The case found little support in court, with a judge saying prosecutors had offered “essentially zero evidence” of a crime.
• The investigation was part of a wider push by the Trump administration against Powell, who has resisted pressure to cut interest rates.