The DOJ is dropping its investigation into Jerome Powell

• The DOJ will drop the criminal probe into Fed Chair Jerome Powell.
• The Fed's Inspector General will take over the investigation, the Attorney General said.
• The move paves the way for Kevin Warsh to be confirmed as Powell's successor.

The Department of Justice will drop its probe into Federal Reserve Chair Jerome Powell, US Attorney Jeanine Pirro announced Friday.

She said the Inspector General for the Fed has been asked to "scrutinize the building costs overruns — in the billions of dollars — that have been borne by taxpayers," and will take over the investigation from the DOJ. This means the possibility of criminal charges against Powell has been dropped for now.

The department initially launched a probe into Powell over the Fed's alleged mishandling of construction funds at the central bank's Washington DC buildings.

"Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so," Pirro said on X. She added that she expects "a comprehensive report in short order from the Inspector General and is 'confident the outcome will assist in resolving, once and for all, the questions that led this office to issue subpoenas."

The Fed declined to comment to Business Insider.

This is a developing story, check back for updates.