WH: Powell probe “not necessarily dropped”

White House Press Secretary Karoline Leavitt on Friday downplayed the Justice Department’s decision to end its criminal probe into Federal Reserve Chair Jerome Powell, saying the case was “not necessarily dropped” but rather being shifted to the central bank’s inspector general.

“It’s just being moved over to the inspector general, who has critical tools at their disposal to continue to look into the financial mismanagement at the Fed,” she told reporters, calling it a “priority” for the president. “The investigation still continues, it’s just under a different authority, and that’s what you’ll continue to see.”

Ms. Leavitt also said she was unaware if the decision was made in an attempt to appease Sen. Thom Tillis (R-NC), a senior member of the Banking Committee who vowed to block any Fed nominee, including chair nominee Kevin Warsh, until the investigation into Mr. Powell was dropped.

“Sen. Tillis should do the right thing and move to confirm Kevin Warsh as speedily as possible,” she said. “He is a phenomenal candidate to lead the Fed, and we shouldn’t be holding our nation’s economy hostage because of a disagreement with the Department of Justice.”

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