DOJ Ends Powell Investigation, Paving Way for Warsh's Fed Confirmation
The Justice Department has concluded its investigation into Federal Reserve Chair Jerome Powell, potentially facilitating the confirmation of Kevin Warsh as his successor.
The U.S. Department of Justice has concluded its criminal investigation into Federal Reserve Chair Jerome Powell, which centered on cost overruns during the renovation of the Fed's headquarters. U.S. Attorney Jeanine Pirro announced the decision, stating that the case would be closed as the Inspector General continues its inquiry.
This development clears the path for the Senate Banking Committee to proceed with the confirmation process for Kevin Warsh, President Donald Trump's nominee to succeed Powell. Warsh, a former Fed governor and economic advisor, emphasized his intention to remain an "independent actor" during his recent confirmation hearing. However, concerns have been raised about his ability to resist political pressure, especially given his alignment with some of the administration's monetary policy preferences.
Senator Elizabeth Warren (D-Mass.) criticized the timing of the DOJ's decision, suggesting it was intended to facilitate Warsh's confirmation. She expressed skepticism about Warsh's independence, stating that "no Republican claiming to care about Fed independence should support moving forward the nomination of Kevin Warsh."
The Senate Banking Committee has scheduled a vote on Warsh's nomination for April 29, aiming for full Senate confirmation before Powell's term concludes on May 15. Powell, who has served as Fed Chair since 2018, has faced criticism from the administration for not aligning with its monetary policy goals.