DOJ Drops Powell Probe, Clearing Path for Trump's Fed Pick

0:00It's April 24th. I'm Corey with The Story, and this is Anchorage News Today, Local News Powered by AI. The Department of Justice just scrapped its probe into Federal Reserve Chair Jerome Powell over a $2.5 billion office renovation. U.S. Attorney Jeanine Piro shed it down Friday, kicking the ball to the Fed's Inspector General for a full review on those cost overruns. Piro made the call after a federal judge blocked their subpoenas last month, and she warned the criminal investigation could fire back up if new. Facts emerge. This move looks like a win for North Carolina Senator Tom Tillis, who refused to back Trump's nominee, Kevin Warsh, without dropping what he called a bogus case. Tillis' vote is key on the Senate Banking Committee, where Democrats are solidly against Warsh, and Powell's term wraps up in May anyway. Trump has hammered Powell nonstop, blasting him for high interest rates, and saying he could have renovated the headquarters for just $25 million dollars with cash to spare.

1:02Senator Elizabeth Warren fired back, calling it a shady play to ram through Trump's hand-picked Fed leader while a separate probe into fire governor. Lisa Cook drags on, with the Supreme Court weighing her dismissal. Trump even nicknamed Powell Jerome too late for moving slow on rates. All eyes now turn to the Senate as this clears a path for fresh-fed blood, but tensions around independence and those renovations ain't fading any time.