Justice Department Drops Investigation Into Federal Reserve Chair Jerome Powell
In Brief
Ending the probe removes a major obstacle to confirming President Trump's nominee to lead the Federal Reserve.
Key Facts
- The Justice Department has closed its investigation into Federal Reserve Chair Jerome Powell.
- ABC News reported the DOJ was expected to drop the criminal probe as soon as Friday, citing unnamed sources.
- The investigation had been seen as a hurdle to confirming President Trump's new pick for Fed chair.
- President Trump indicated openness to alternative ways to investigate Powell, according to Semafor.
- Treasuries edged higher following news of the DOJ decision.
What Happened
The U.S. Justice Department ended its investigation into Federal Reserve Chair Jerome Powell, which had focused on alleged improper cost overruns in renovating the Fed's building.
Why It Matters
The closure of the probe is expected to clear the way for the confirmation process of President Trump's nominee, Kevin Warsh, who has proposed significant changes to the central bank.
What's Next
Attention will now turn to the Senate confirmation process for Kevin Warsh and potential policy shifts at the Federal Reserve.
Sources
- Bloomberg Markets — Treasuries Gain as DOJ Drops Fed Probe, Opening Path for Warsh(1h ago)
- Bloomberg Markets — Trump Suggests He’d Be Open to Alternative Probe of Fed’s Powell(6h ago)
- ABC News — DOJ expected to drop criminal probe of fed chair amid pressure from senators: Sources(2h ago)