The U.S. Department of Justice has dropped the criminal investigation into Federal Reserve Chairman Jerome Powell.

The U.S. Department of Justice announced on Friday that it is dropping the criminal investigation against Federal Reserve Chairman Jerome Powell, thus removing a major obstacle in the way of confirming Kevin Warsh, nominated by President Donald Trump. Jeanine Pirro, the lead federal prosecutor, stated that the Federal Reserve's inspector general will investigate the costly renovations of the central bank's headquarters, which were the initial reason for the investigation.

Although Pirro argued that the investigation was necessary, many viewed it as pressure on Powell to lower interest rates. Senator Thom Tillis blocked the Senate vote on Warsh's nomination until the investigation was concluded.

Pirro mentioned that although the criminal investigation is closed, she will resume the inquiry if the facts warrant it. The White House expressed confidence that the Senate will quickly confirm Warsh's nomination to restore trust in the Federal Reserve's decision-making process.