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Central BanksMediumUpdated•Originally published 22 April 2026•Updated 24 April 2026•
1 min read

DOJ Drops Jerome Powell Probe to Clear Path for Kevin Warsh Succession

Key Facts

1U.S. Attorney Jeanine Pirro confirmed the investigation into the Federal Reserve is proceeding despite legal challenges.
2The Department of Justice plans to appeal a judge's order that blocked subpoenas issued to Fed Chairman Jerome Powell.
3The probe is endangering the confirmation of Kevin Warsh, President Trump's pick to replace Jerome Powell.

The U.S. Department of Justice has reversed its previous stance and officially dropped its investigation into Federal Reserve Chairman Jerome Powell. This sudden pivot follows earlier plans to appeal a judicial ruling that blocked subpoenas against Powell, signaling a de-escalation in the legal standoff. The decision is strategically aimed at clearing any hurdles for the confirmation of Kevin Warsh, President Trump’s nominee to lead the central bank. Warsh is now expected to take office on May 15, coinciding with the official end of Powell's term. Market analysts suggest that ending the probe will restore a sense of institutional stability and reduce concerns over the Fed's independence. This move effectively concludes the administration's legal pursuit of Powell as the leadership transition date approaches. The resolution is expected to provide much-needed clarity for global financial markets regarding the future of U.S. monetary policy.