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DOJ Ends Powell Probe, Unblocks Warsh Confirmation as Fed Chair

economy-finance · 2026-04-24

The Department of Justice has wrapped up its investigation into the Federal Reserve building's budget overruns, which clears the way for Kevin Warsh's confirmation as chair. US Attorney Jeanine Pirro mentioned that the Fed's Inspector General will take charge of the situation, but a criminal probe could be reopened if needed. This investigation had previously held up Warsh's confirmation because retiring Senator Thom Tillis (R-NC) wasn’t on board. With a slim Republican majority of 13-11 and total Democratic opposition, Tillis’s support was crucial. In hearings on Tuesday, he told Warsh, "Let’s resolve this investigation so I can back your confirmation." Warsh, who once served under Bernanke, has criticized Powell’s policies and advocated for a smaller Fed balance sheet. His confirmation could mark a major shift for the Fed.

Key facts

  • DOJ ends investigation into Fed building cost overruns.
  • Investigation now handled by Fed Inspector General.
  • US Attorney Jeanine Pirro announced the closure via X.
  • Pirro may restart criminal investigation if warranted.
  • Probe blocked Kevin Warsh's Senate confirmation as Fed chair.
  • Senator Thom Tillis (R-NC) refused to support any Fed nominee while probe was active.
  • Republicans hold 13-11 majority; all 11 Democrats opposed nomination.
  • Tillis told Warsh: 'Let's get rid of the investigation so that I can support your confirmation.'
  • Powell's term as Fed chair expires May 15.
  • Powell said he would stay as 'chair pro tempore' until successor confirmed.
  • Warsh advocates for smaller Fed balance sheet and is an inflation hawk.
  • Warsh resigned from Fed in 2011 over Bernanke's QE-2.
  • Treasury Secretary Scott Bessent also opposes Powell's policies.
  • Warsh calls for 'regime change' at the Fed.

Entities

Institutions

  • Department of Justice
  • Federal Reserve
  • Federal Reserve Board of Governors
  • Federal Reserve Board
  • Federal Open Market Committee (FOMC)
  • Senate Banking Committee
  • WOLF STREET

Locations

  • Washington DC
  • United States

Sources