White House caves on criminal investigation into Fed Chair Jerome Powell

The Trump administration will reportedly drop an investigation into Fed Chair Jerome Powell that has drawn bipartisan criticism.

President Donald Trump pushed for an investigation into cost overruns on an office renovation project after the Federal Reserve declined to yield to his demand that interest rates be lowered. The probe focused on alleged false statements Powell made to Congress about the renovations.

Sen. Thom Tillis (R-NC) has said that he would block confirmation of Powell's successor because of the investigation.

On Friday, ABC's Katherine Faulders reported that the Department of Justice was expected to end the probe ahead of a vote on the new Federal Reserve chair.

"Senior DOJ officials have contacted senators in recent days, including Sen. Thom Tillis, informing them of the plan to drop the probe and refer the matter regarding alleged cost overruns at the Fed's Washington headquarters to the bank's internal watchdog," Faulders noted.

Trump appointed Powell as Fed chair during his first term.

Jeanine Pirro, the U.S. Attorney for D.C., confirmed that she had dropped the case against the Fed chair.

"I have directed my office to close our investigation as the IG undertakes this inquiry," Pirro revealed on X. "Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so."