**Federal prosecutors have ended their criminal probe into Federal Reserve Chair Jerome Powell. The decision, announced Friday by U.S. Attorney Jeanine Pirro, removes the main political roadblock preventing the Senate from voting on Kevin Warsh, Trump’s nominee to lead the central bank.**

The investigation centered on multi-billion-dollar renovations at the Federal Reserve’s Washington headquarters. Pirro stated that the Federal Reserve’s inspector general (IG) has been formally asked to take over the inquiry.

The move follows months of legal friction. Earlier this week, a federal judge blocked subpoenas Pirro’s office had issued to the Fed. Furthermore, Senator Thom Tillis (R-NC) had effectively frozen Warsh’s confirmation process, refusing to allow a vote until the criminal investigation into the sitting chair was resolved.

Pirro noted that while her office is closing its file for now, she could reopen a criminal case if the IG’s findings suggest illegal activity. The inspector general's office confirmed it is working to finish its evaluation and will make the results public.

Trump signaled his support for the change, with spokesman Kush Desai stating that the IG is better positioned to handle "fiscal mismanagement" concerns. Senate Banking Committee Chairman Tim Scott (R-SC) also advocated for this transition, suggesting that Congress could eventually form a permanent oversight committee for such construction projects. Scott has previously characterized Powell as "incompetent" rather than criminal.

However, the decision faces sharp criticism from Democrats. Senator Elizabeth Warren (D-MA) described the move as a tactic to install Kevin Warsh, whom she labeled a "sock puppet" for Trump. Warren also pointed out that a separate investigation into Fed Governor Lisa Cook remains active, calling the overall DOJ strategy a "corrupt scheme" to compromise the central bank’s independence.

DOJ ends Powell probe, lifts hurdle for Trump’s Fed chair nominee Warsh