DOJ Drops Powell Probe as Warsh Path Clears Fast

A major shakeup at the top of the U.S. financial system is now moving at full speed.

The Justice Department has officially ended its criminal investigation into Jerome Powell, removing a key obstacle to confirming his potential successor, Kevin Warsh.

The probe had focused on the Federal Reserve’s costly building renovations. But on April 24, U.S. Attorney Jeannine Pirro announced the case would be dropped, with oversight shifting instead to the Fed’s internal inspector general.

Translation: no criminal case, no delay.

And that changes everything.

Warsh, nominated by Donald Trump back in January, had been facing a political roadblock. Senator Thom Tillis previously said he would not support the nomination while the investigation was ongoing.

Now that barrier is gone.

With Powell’s term set to expire on May 15, the Senate could move quickly to confirm Warsh and lock in a leadership transition at the Federal Reserve.

But the controversy is not over.

During recent hearings, Republicans praised Warsh’s experience, while Democrats raised concerns about his independence and past positions on interest rates. Questions also surfaced about transparency tied to his financial holdings.

Warsh pushed back.

He told lawmakers he never agreed to cut interest rates at the White House’s request and insisted he would act independently if confirmed.

That claim comes as Trump has continued publicly urging rate cuts, adding pressure to an already sensitive role.

Meanwhile, the now-closed probe had been struggling for months. In court, prosecutors reportedly failed to present solid evidence of wrongdoing. A federal judge even criticized the case as lacking substance, calling the justification for subpoenas “thin and unsubstantiated.”

That criticism, combined with internal setbacks, ultimately led to the investigation being dropped.

The bigger picture is clear.

What started as a legal cloud over Powell has now turned into a fast-track moment for a potential leadership shift at the world’s most powerful central bank.

And with inflation, interest rates, and global markets all on edge, who leads the Fed next could shape the financial future for millions.