Thune calls for DOJ to drop Powell probe

Senate Majority Leader John Thune (R-SD) on Tuesday called on the Justice Department to end its investigation into Federal Reserve Chair Jerome Powell to speed up the confirmation of Kevin Warsh, the president's nominee to lead the central bank.

"We all agree that Kevin Warsh is a great pick and hopefully will be confirmed, and I'm hoping that these other matters related to Chairman Powell can be resolved in a way that would enable us to get Warsh out of the committee and across the Senate floor," he told reporters.

The Justice Department has opened a criminal investigation into whether Mr. Powell lied to Congress when testifying about cost overruns related to renovations at the central bank's Washington, DC, headquarters. Members of both parties say they see no evidence of a crime and argue the probe is an attempt to pressure the Fed to lower interest rates.

Sen. Thom Tillis (R-NC), a key vote on the Banking Committee, has vowed to block any of President Trump's central bank nominees until the probe is closed.

"As you know, there are currently, at least, some obstacles to that on the committee," Sen. Thune said of Mr. Warsh's confirmation. "But I think the sooner the administration can wrap up this investigation and get ready to move forward with a new chairman, the better off everybody will be."

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