WASHINGTON, D.C.:  With the Justice Department closing its investigation into Federal Reserve Chair Jerome ​Powell, U.S. Attorney Jeanine Pirro said on April 24 that it cleared the way for the confirmation of Kevin Warsh to head the Federal Reserve.

Jeanine Pirro, a Trump ally and the top federal prosecutor in Washington, D.C., has stopped an investigation for now. The inquiry had been criticized by a federal judge and had led a Republican senator to block Trump's nominees to the central bank.

Pirro said she has instead asked the Federal Reserve's internal watchdog, the Office of Inspector General, to look into rising costs in renovating the Fed's Washington headquarters. The watchdog was already reviewing the project after Jerome Powell requested it last year.

Pirro said the inspector general has the power to hold the Federal Reserve accountable and expects a full report soon, which she believes will help settle the issues that led to the investigation.

The probe into Powell, which examined the renovation project and his statements to Congress, became part of a broader clash between the Justice Department and Trump's critics. Last month, a federal judge blocked subpoenas issued to the Fed's Board of Governors, saying they were meant to pressure Powell to either cut interest rates quickly or resign. The judge also said there was almost no evidence that Powell had committed any crime.

Earlier this week, Pirro had said she would appeal the ruling and continue the investigation.

Republican Senator Thom Tillis of North Carolina had refused to support Warsh's nomination until the Justice Department ended what he called a baseless investigation into Powell, effectively delaying the confirmation.

There was no immediate comment from Tillis's office. The Federal Reserve also declined to comment. A White House spokesperson said the inspector general is best suited to handle the matter and expressed confidence that the Senate will confirm Warsh.

Ending the investigation may now make it easier for Warsh to be confirmed as Fed chair, possibly by May 15, when Powell's term as chair ends. However, it is unclear if this will lead Powell to step down from his role as governor.

Powell had said last month that he would not leave the Board until the investigation is fully completed with transparency. Pirro said she could restart the investigation depending on what the inspector general finds.

Powell first revealed the investigation in January, calling it an attempt by Trump to gain influence over monetary policy. He also said he would remain on the Fed's Board after his term as chair ends until the matter is resolved.