DOJ Ends Investigation into Fed Chair Powell, Paving Way for Warsh Confirmation

The Department of Justice has concluded its criminal investigation into Federal Reserve Chair Jerome Powell, focusing 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.

"I have directed my office to close our investigation as the IG undertakes this inquiry," Pirro stated on X.

This development removes a significant obstacle to the Senate confirmation of Kevin Warsh, President Donald Trump's nominee to succeed Powell. Senator Thom Tillis (R-N.C.) had previously indicated he would oppose Warsh's confirmation until the investigation was resolved, effectively delaying the process.

The investigation into Powell had faced criticism for lacking substantial evidence. A federal judge had earlier quashed subpoenas issued to the Federal Reserve, describing the case as "thin and unsubstantiated." Powell suggested that the probe was intended to pressure the Fed into lowering interest rates, aligning with the administration's preferences.

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 expressed concerns about his potential alignment with the President's views.

With the investigation concluded, the Senate is expected to proceed with Warsh's confirmation process in the coming days.