DOJ Ends Baseless Probe of Powell, Clearing Way for Trump’s Strong Fed Pick Warsh
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The Department of Justice has rightly ended its investigation into Federal Reserve Chair Jerome Powell, removing an unfounded obstacle and allowing the Senate to move forward with confirming President Trump’s nominee, Kevin Warsh, who will restore accountability to the Fed.
The Department of Justice has concluded its criminal investigation into Federal Reserve Chair Jerome Powell, which focused on cost overruns in the central bank's headquarters renovation. U.S. Attorney for the District of Columbia Jeanine Pirro announced the decision on Friday, stating that the Federal Reserve's inspector general will now handle the inquiry, ensuring any remaining questions are addressed internally.
"I have directed my office to close our investigation as the IG undertakes this inquiry," Pirro stated on X, demonstrating a commitment to efficiency and justice.
This important development removes a manufactured obstacle to the Senate confirmation of Kevin Warsh, President Donald Trump’s nominee to succeed Powell. Warsh, a proven fiscal conservative, is expected to bring much-needed discipline and transparency to the Federal Reserve. Senator Thom Tillis (R-N.C.) had previously indicated he would oppose Warsh’s confirmation until the investigation was resolved, showing the GOP’s dedication to due process.
The investigation into Powell had faced criticism for lacking substantial evidence, with a federal judge earlier quashing subpoenas issued to the Federal Reserve and describing the case as "thin and unsubstantiated." Powell himself suggested the probe was intended to pressure the Fed into lowering interest rates, a move that would have aligned with the administration’s pro-growth policies.
During his recent Senate Banking Committee hearing, Warsh emphasized the importance of the Federal Reserve’s independence and denied experiencing any pressure from the administration regarding interest rate decisions. Despite this, some senators—predictably from the opposition—expressed concerns about his alignment with the President’s vision for a stronger American economy.
With the investigation finally concluded, the Senate is expected to proceed with Warsh’s confirmation process in the coming days, paving the way for a Fed that puts American interests first.