Department of Justice drops criminal probe of Fed chair Powell, likely clearing path for Warsh

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FILE-Federal Reserve chair Jerome Powell speaks during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve on March 18, 2026 in Washington, D.C. (Photo by Anna Moneymaker/Getty Images)

The Department of Justice ended its investigation into Federal Reserve chair Jerome Powell, clearing a significant hurdle to the confirmation of his successor, Kevin Warsh. 

This move ends a probe, which is one of several backed by the DOJ into President Donald Trump’s perceived rivals, that for months were unable to gain traction as prosecutors struggled to explain a basis to suspect criminal conduct. 

RELATED: Trump 'not planning' to fire Fed Chair Jerome Powell, despite reports

In March, a prosecutor managing the case admitted at a court hearing that the federal government didn’t find evidence of a crime, resulting in a judge repealing a subpoena issued by the Federal Reserve.

What does the ending of the Powell investigation mean for Warsh?

Dig deeper:

Now that the probe into Federal Reserve chair Jerome Powell has concluded, this may lead to a quick confirmation vote by the Senate for Kevin Warsh.

Warsh is a former top Federal official whom President Donald Trump nominated in January to replace Powell. 

RELATED: Trump says he will not drop DOJ criminal probe into Fed chair Jerome Powell

Powell's term as Fed chair ends May 15. Sen. Thom Tillis, a North Carolina Republican, said he would oppose Warsh until the investigation was resolved, effectively blocking his confirmation, The Associated Press reported. 

Republicans lauded Warsh during a Tuesday hearing even as Democrats questioned his independence from Trump, the lack of transparency around some of his financial holdings, and what they said was his waffling on interest rates.

The AP noted that Warsh said during the Senate hearing Tuesday that he never promised the White House that he would slash interest rates, even as Trump renewed his request for the Federal Reserve to comply. 

Warsh’s comments came just hours after Trump, in an interview on CNBC, was asked if he would be disappointed if Warsh didn’t immediately cut rates and responded, "I would."

Who is Kevin Warsh?

The backstory:

Kevin Warsh was a member of the Fed's board from 2006 to 2011. And he was also the youngest governor in history when he was appointed at age 35. 

Warsh, 55, is currently a fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business.

During his tenure as governor, Warsh opposed some of the low-interest rate policies that the Federal Reserve pursued during and after the 2008-09 Great Recession. Warsh also expressed concern at that time that inflation would soon accelerate.