DOJ Ends Probe of Powell
DOJ ends probe of Powell, removing a Senate obstacle to Kevin Warsh's confirmation and nudging rate expectations before Powell's May 15, 2026 term end.
KEY TAKEAWAYS
- DOJ ended its criminal probe into Jerome Powell on April 24, 2026.
- The probe targeted testimony about a $2.5 billion Fed headquarters renovation.
- Closure removed Sen. Tillis's hold and cleared the path for Kevin Warsh's confirmation.
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The Justice Department ended its criminal investigation into Federal Reserve Chair Jerome Powell on April 24, 2026, removing a Senate obstacle that had stalled Kevin Warsh’s confirmation and clearing the way for committee action before Powell’s term expires on May 15, 2026.
Justice Department Ends Investigation
The probe focused on Powell’s congressional testimony about the Federal Reserve’s planned $2.5 billion renovation of its headquarters near the National Mall. The investigation began on January 11, 2026, but faced setbacks after a U.S. district judge twice blocked Department of Justice subpoenas as pretextual. Prosecutors had not presented criminal evidence in court.
Path Cleared for Warsh Confirmation
Senator Thom Tillis (R., N.C.) had placed a hold on President Trump’s nominee, Kevin Warsh, until the Justice Department resolved the investigation. Warsh had already appeared before the Senate Banking Committee for his confirmation hearing. The probe’s closure removes the main barrier to advancing his nomination.
Powell’s term as Fed chair ends May 15, 2026. If no successor is confirmed by then, Powell could receive a short extension. The committee’s next steps will depend on its schedule and Senate decisions about when to hold votes. The Justice Department’s decision eliminates the primary procedural hurdle that had delayed consideration of Warsh’s nomination.
