End of Justice Department's Powell probe could clear way for Kevin Warsh's confirmation as Fed chair
CBS News
Last updated: April 25, 2026
The Justice Department has concluded its criminal investigation into former Federal Reserve Chair J. Powell, removing a significant obstacle. This development is seen as potentially paving the way for Kevin Warsh's confirmation as the new Fed chair.
- The Justice Department's decision to drop its criminal probe into J. Powell marks a turning point. This investigation, though details were scarce, had cast a shadow over potential candidates for the Federal Reserve's top position. The closure of this inquiry is a critical step towards resolving leadership at the central bank.
- The primary implication of this development is the potential acceleration of Kevin Warsh's confirmation process. Warsh, a former Fed governor, has been a contender for the chair role. The removal of the J. Powell investigation's cloud of uncertainty allows the focus to shift more definitively towards Warsh's nomination. This could lead to a smoother and more timely confirmation by the Senate, ensuring continuity and stability at the Federal Reserve during a period of economic deliberation. The outcome of this Justice Department probe directly influences the political landscape surrounding the Federal Reserve's leadership.
