The U.S. Justice Department has dropped its investigation into Federal Reserve Chair Jerome Powell, according to federal prosecutor Janine Pirro.
The decision to close the case suggests Powell may be replaced by President Donald Trump’s nominee, Kevin Warsh, as reported by the Associated Press.
Trump has repeatedly criticized Powell, calling him “incompetent” and threatening legal action over the central bank’s refusal to lower interest rates in line with the president’s preferences.
Powell has maintained that the Fed sets interest rates based on what best serves the public, not on presidential pressure, a stance that has drawn consistent criticism from the administration.
The development underscores ongoing tensions between the White House and the independent central bank, particularly regarding monetary policy decisions amid economic uncertainty.
