The U.S. Department of Justice has dropped its criminal investigation into Federal Reserve Chair Jerome Powell, a move that could ease the confirmation process for President Donald Trump’s nominee, Kevin Warsh. The probe had focused on alleged cost overruns tied to a Federal Reserve building renovation project.
Attorney General Jeanine Pirro announced that the Justice Department would transfer responsibility for the review to the Federal Reserve’s inspector general, who is expected to conduct an independent inquiry and issue a report. She noted that the department could reopen the criminal investigation if new facts emerge.
Senate Confirmation Prospects Strengthen
Warsh’s nomination had faced resistance from Thom Tillis, who previously stated he would block confirmation until the investigation into Powell was dropped. Following the DOJ decision, market prediction platforms showed the probability of Warsh’s confirmation before May 15 jumping from roughly 30% to more than 80%.
Warsh recently completed his Senate confirmation hearing and stated that he would maintain independence from White House influence if confirmed.
Political Reactions Highlight Ongoing Disputes
The decision drew criticism from Elizabeth Warren, ranking Democrat on the Senate Banking Committee. She argued that ending the Powell investigation was an attempt to accelerate Warsh’s confirmation while noting that legal action involving Federal Reserve Governor Lisa Cook remains ongoing.
If confirmed, Warsh’s leadership at the Federal Reserve could shape U.S. monetary policy decisions and influence regulatory frameworks affecting financial markets, including cryptocurrency and stablecoin oversight.
Tillis called Warsh a “great nominee.” In on X;
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