DOJ Drops Powell Probe, Clears Path for Warsh Confirmation
The Justice Department ended its criminal investigation into Federal Reserve Chair Jerome Powell on Friday. The probe centered on a ₱151.85 billion ($2.5 billion) renovation of the Fed's Washington headquarters, which Federal Judge James Boasberg ruled lacked evidence of crime.
Key Takeaway
Warsh's confirmation before May 15 is now certain after DOJ dropped the Powell probe.
The Justice Department ended its criminal investigation into Federal Reserve Chair Jerome Powell on Friday, transferring the matter to the Fed's internal watchdog instead.
Federal Judge James Boasberg quashed DOJ subpoenas in March, ruling the government had found essentially zero evidence of crime and calling the justification thin and unsubstantiated.
U.S. Attorney for the District of Columbia Jeanine Pirro announced the closure and called for a comprehensive report in short order from the Fed's Inspector General.
Powell labeled the investigation a political weapon in January, saying it was a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President. Bitcoin climbed toward ₱5,588,132 ($92,000) that month while the Fed held rates steady between 3.5% and 3.75%.
The probe's end clears the path for Kevin Warsh's confirmation before Powell's term expires on May 15. The former Federal Reserve Governor and Stanford professor testified before the Senate Banking Committee on Tuesday, telling senators the president never once asked me to commit to any particular interest rate decision, period.
Senator Thom Tillis had vowed to block Warsh's confirmation until the probe ended, describing it as bogus. Senator Elizabeth Warren called Warsh a sock puppet for Trump. Bitcoin has traded between ₱4,251,840 ($70,000) and ₱5,588,132 ($92,000) so far in 2026, with confirmation expected by May 15.
This article was written based on reporting from Bitcoin Magazine.
