Criminal Probe Into US Fed Chief Halted As Successor Awaits Approval

WASHINGTON, April 25 (Bernama-dpa) -- A criminal investigation into US central bank chief Jerome Powell over renovation costs at the Federal Reserve building has been halted for now, potentially unlocking a stalemate over the nomination of his successor, reported German news agency dpa. 

District attorney Jeanine Pirro, who is seen as an ally of US President Donald Trump, said on Friday she had instructed her office to discontinue the investigations because another authority, the Inspector General for the Federal Reserve, had been asked to probe the matter. 

"Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry," she wrote on X. 

Her message added: "Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so."

In mid-January, Powell took the highly unusual step of going public and making the investigations against him known. He classified a threatened indictment as an attempt to influence the work of the Federal Reserve.

The judicial battle came amid repeated criticism of Powell from Trump, who has been demanding that the Fed cut its key interest rate. The rate has remained stable in the past two meetings. 

Trump has nominated Fed board member Kevin Warsh as Powell's successor, but the nomination process has been held up by an influential Republican senator, Thom Tillis.

Tillis said he would not vote for Trump's candidate for the central bank until the investigation into Powell was stopped. 

The process is running out of time: Powell's term as Fed chief ends in May; if no successor has been found by then, he said he may continue to lead the Fed on an interim basis.

--BERNAMA-dpa