{"id":49285,"date":"2026-04-24T19:19:31","date_gmt":"2026-04-24T16:19:31","guid":{"rendered":"https:\/\/mk.gen.tr\/doj-drops-probe-tied-to-fed-potentially-easing-path-for-warsh-confirmation\/"},"modified":"2026-04-24T19:19:31","modified_gmt":"2026-04-24T16:19:31","slug":"doj-drops-probe-tied-to-fed-potentially-easing-path-for-warsh-confirmation","status":"publish","type":"post","link":"https:\/\/mk.gen.tr\/tr\/doj-drops-probe-tied-to-fed-potentially-easing-path-for-warsh-confirmation\/","title":{"rendered":"DOJ drops probe tied to Fed, potentially easing path for Warsh confirmation"},"content":{"rendered":"

The U.S. Department of Justice <\/strong>(DOJ) on Friday dropped its investigation<\/a> into the Federal Reserve<\/strong> regarding Jerome Powell\u2019s congressional testimony on the central bank\u2019s headquarters renovation. The decision could ease the path for Kevin Warsh<\/a>\u2018s confirmation as Powell\u2019s successor.<\/p>\n

Jeanine Pirro, U.S. Attorney for the District of Columbia, announced that she\u2019s closing the investigation and directing the Fed\u2019s internal watchdog to review the matter.<\/p>\n

\u201cThis morning the Inspector General for the Federal Reserve<\/a> has been asked to scrutinize the building costs overruns \u2014 in the billions of dollars \u2014 that have been borne by taxpayers,\u201d Pirro said in a post on X<\/strong>. \u201cAccordingly, I have directed my office to close our investigation as the IG undertakes this inquiry. Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so.\u201d<\/p>\n

The move comes days after Warsh, President Donald Trump\u2019s nominee<\/a> to serve as the 17th Fed chairman, faced sharp questioning at his Senate<\/strong> confirmation hearing. Warsh told lawmakers he would not be the president\u2019s \u201csock puppet\u201d on interest rate decisions.<\/p>\n

During the hearing, Sen. Thom Tillis (R-N.C.) pledged to block<\/a> any Fed nominees until the DOJ completed its probe of Powell. Tillis expressed disdain for the investigation while acknowledging Warsh\u2019s \u201cextraordinary credentials.\u201d<\/p>\n

The likelihood of Warsh\u2019s confirmation stood at 85% before May 15 and 95% before June 1 as of 11 a.m. ET on Friday, according to the federally regulated prediction market Kalshi<\/strong>.<\/p>\n

Meanwhile, data from the CME Group<\/strong>\u2018s FedWatch Tool<\/a> on Friday shows a growing share of market participants who expect rate cuts starting in July, although most project rates will remain unchanged for the rest of the year.<\/p>\n

In March, federal judge James E. Boasberg blocked DOJ subpoenas<\/a> served to the Fed. He concluded the effort appeared designed to \u201charass and pressure\u201d Powell to lower interest rates or resign.<\/p>\n

Pirro called the decision \u201coutrageous\u201d and pledged to appeal. The judge later denied her office\u2019s request to reconsider the ruling.<\/p>\n

The DOJ served the Fed with grand jury subpoenas in January, threatening a criminal indictment against Powell. The dispute centered on Powell\u2019s testimony regarding the Fed\u2019s $2.5 billion headquarters renovation, but Powell stated in a video that the renovation concerns were merely a pretext for the subpoenas.<\/p>\n

Editor\u2019s note:<\/strong> This is a developing story and will be updated with more information.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

The U.S. Department of Justice (DOJ) on Friday dropped its investigation into the Federal Reserve regarding Jerome Powell\u2019s congressional testimony on the central bank\u2019s headquarters renovation. The decision could ease the path for Kevin Warsh\u2018s confirmation as Powell\u2019s successor. Jeanine Pirro, U.S. Attorney for the District of Columbia, announced that she\u2019s closing the investigation and…<\/p>","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts\/49285"}],"collection":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/comments?post=49285"}],"version-history":[{"count":0,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts\/49285\/revisions"}],"wp:attachment":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/media?parent=49285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/categories?post=49285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/tags?post=49285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}