Overview
- U.S. Attorney Jeanine Pirro said on April 24th that the Justice Department ended its criminal investigation into Jerome Powell’s handling of the Fed’s headquarters renovation, removing the obstacle Senator Thom Tillis used to stall Kevin Warsh’s nomination.
- Following that decision, the Senate Banking Committee advanced Warsh, and a narrow party-line confirmation by the full Senate is expected in mid‑May as Powell’s term as chair ends May 15 and he remains a governor until 2028.
- A federal judge earlier quashed DOJ subpoenas in the case and said prosecutors had produced essentially zero evidence of a crime, and the matter now shifts to the Fed’s inspector general, who could refer any findings back to DOJ.
- Powell said he is staying on the Board to guard the central bank’s ability to set interest rates without political pressure after what he called unprecedented legal attacks, setting up an uncommon period with a former chair voting under a new chair.
- Treasury Secretary Scott Bessent criticized Powell’s choice as breaking norms, while recent Fed dissents and the Board’s unchanged rates underscore a tougher path for quick cuts that could affect borrowers, markets, and the new chair’s effort to build consensus.