Leavitt: Powell Case 'Not Necessarily Dropped'

White House press secretary Karoline Leavitt said the investigation into Federal Reserve Chair Jerome Powell is not over.

The Justice Department announced Friday it was dropping its investigation into Powell over his handling of renovations at the central bank.

"The case is not necessarily dropped," Leavitt told reporters.

"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," Leavitt added. "It’s just under a different authority, and that’s what you’ll continue to see."

Leavitt backed up a statement U.S. Attorney for the District of Columbia Jeannine Pirro who said her office was ending its investigation into Powell.

 "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 said on X.

"The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I expect a comprehensive report in short order and am confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas," Pirro added.

 "I will not hesitate to restart a criminal investigation should the facts warrant doing so," Pirro concluded.

Sen. Thom Tillis, R-N.C., had vowed to block any nominee to the Federal Reserve until the Justice Department ended its investigation into the fed chair.

The Justice Department’s decision ends an investigation that for months had failed to gain traction as prosecutors struggled to articulate a basis to suspect criminal conduct and now clears a path for the nomination of Kevin Warsh to succeed Powell.

• DOJ Drops Criminal Probe of Fed Chair, Likely Clearing Way for Warsh
• Warsh: Trump Has Not Pressured Me to Cut Rates