Trump Administration Drops Powell Criminal Probe

The unprecedented criminal investigation by the Trump administration into Fed Chair Jerome Powell was abruptly called off Friday, potentially clearing the way for his proposed replacement, Kevin Warsh, to win Senate approval. A key Republican senator, Thom Tillis of North Carolina, vowed to block Warsh’s confirmation unless the matter was dropped.

The probe, ostensibly about construction cost overruns, has been condemned by critics of the administration and others as an example of the weaponization of the Justice Department against Donald Trump’s perceived enemies. In this case, the president’s very public desire for the Fed to cut rates in the hopes it will boost the economy was seen as the reason behind the investigation. A federal judge recently alluded to the contention, excoriating prosecutors as he refused to let them issue subpoenas.