The essentials
Federal judge ends Powell investigation, clearing final obstacle to Warsh's Fed chair confirmation.
The Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell, concluding an inquiry that centered on building renovation costs at the Federal Reserve. A federal judge previously blocked original subpoenas to Powell, determining prosecutors lacked sufficient evidence to proceed with the investigation.
The investigation's closure removes a procedural barrier that had delayed Kevin Warsh's confirmation process to succeed Powell as Federal Reserve chair. Senator Thom Tillis had conditioned his support for Warsh's nomination on the investigation's completion, using it as leverage during the Senate confirmation process.
Powell will remain as Federal Reserve chair until Warsh's confirmation is finalized, maintaining institutional continuity. During his confirmation testimony, Warsh pledged to maintain Federal Reserve independence, directly addressing concerns about potential executive branch influence on monetary policy decisions during the leadership transition.
Other ways to read this story.
Alternative framings generated by SigNews. These are not independent sources or attributed quotations.
Investigation closure accelerates Federal Reserve leadership succession process
The judge's decision to block subpoenas concludes the investigation and removes Senator Tillis's stated condition for supporting Warsh's nomination. This procedural resolution allows the Senate Banking Committee to proceed with scheduled voting on Warsh's candidacy. Powell's tenure ends in May 2026, creating an institutional timeline that the investigation's closure now permits the Senate to meet through Warsh's confirmation.
Court ruling ends inquiry into Powell's Federal Reserve tenure oversight
The federal judge's determination that prosecutors lacked sufficient evidence reflects the investigative conclusion concerning building renovation costs at the Federal Reserve. The closure represents a formal conclusion to institutional accountability inquiries that emerged during Powell's tenure. The Federal Reserve inspector general continues reviewing building renovation costs as part of ongoing internal oversight mechanisms separate from the criminal investigation.