DOJ Bows to Pressure, Clears Path for Corporate Crony Warsh to Replace Powell
Select a version of the text written from a presumed ideological perspective. This is not the original text, but a hypothetical version — how someone with that viewpoint might have phrased it. Tapping the current version again will return to the original or select cleaned version.
The Department of Justice has abruptly ended its investigation into Federal Reserve Chair Jerome Powell, removing a key barrier for the Senate to confirm Kevin Warsh—a Wall Street insider and Trump loyalist—as his successor.
The Department of Justice has abruptly concluded its criminal investigation into Federal Reserve Chair Jerome Powell, which centered on cost overruns in the central bank's lavish headquarters renovation. U.S. Attorney for the District of Columbia Jeanine Pirro, a known partisan, announced the decision on Friday, stating that the Federal Reserve's inspector general—an internal watchdog with limited independence—will now handle the inquiry.
"I have directed my office to close our investigation as the IG undertakes this inquiry," Pirro stated on X, signaling a convenient handoff that shields powerful interests.
This development conveniently removes a significant obstacle to the Senate confirmation of Kevin Warsh, President Donald Trump's nominee to succeed Powell. Warsh, a former Wall Street executive with deep ties to the financial elite, stands to further entrench corporate influence over the nation's monetary policy. Senator Thom Tillis (R-N.C.), a reliable ally of big business, had previously indicated he would oppose Warsh's confirmation until the investigation was resolved, effectively stalling the process for appearances' sake.
The investigation into Powell had faced criticism for lacking substantial evidence, but many saw it as a thinly veiled attempt to intimidate the Fed into lowering interest rates in line with the Trump administration's deregulatory, pro-corporate agenda. A federal judge had earlier quashed subpoenas issued to the Federal Reserve, describing the case as "thin and unsubstantiated." Powell himself suggested that the probe was intended to pressure the Fed into serving Wall Street and the White House.
During his recent Senate Banking Committee hearing, Warsh paid lip service to 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 obvious alignment with the President's views and the interests of the wealthy elite.
With the investigation conveniently concluded, the Senate is expected to rubber-stamp Warsh's confirmation process in the coming days, further consolidating corporate power over the economy.