DOJ drops Fed Chair Powell probe: What it means for Kevin Warsh
CNBC
Last updated: April 25, 2026
The Department of Justice (DOJ) has dropped a criminal investigation into Federal Reserve Chair Jerome Powell. This development has implications for Kevin Warsh, a former Federal Reserve governor and potential candidate for Fed Chair.
- The DOJ's decision to close the investigation into Fed Chair Powell means he will not face criminal charges. This removes a significant obstacle for Powell's potential renomination or continued leadership at the Federal Reserve. The investigation reportedly stemmed from allegations related to stock trading during his tenure.
- This outcome is particularly noteworthy for Kevin Warsh. Warsh, who has been mentioned as a potential successor or alternative to Powell, now faces a political landscape where Powell's name is cleared of criminal wrongdoing. The DOJ's action neutralizes a key point of contention that could have been leveraged against Powell. Therefore, Warsh's prospects may be affected by Powell's continued standing.
