Pirro drops Powell probe, handing Kevin Warsh a lifeline, though U.S. attorney vows to restart probe ‘should the facts warrant doing so’

WASHINGTON, DC - NOVEMBER 02: (L to R) U.S. President Donald Trump shakes hands with his nominee for the chairman of the Federal Reserve Jerome Powell during a press event in the Rose Garden at the White House, November 2, 2017 in Washington, DC. Current Federal Reserve chair Janet Yellen's term expires in February. (Photo by Drew Angerer/Getty Images) (Credit: Drew Angerer—Getty Images)

The criminal investigation that has held the Federal Reserve chair nomination hostage for three months is over—sort of.

U.S. Attorney for the District of Columbia Jeanine Pirro announced Friday that her office is closing its probe into Fed Chair Jerome Powell and the central bank’s Washington headquarters renovation, punting the matter to the central bank’s inspector general.

“This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns—in the billions of dollars—that have been borne by taxpayers,” Pirro wrote on X. “The IG has the authority to hold the Federal Reserve accountable to American taxpayers.”