DOJ Drops Criminal Probe of Fed Chair Powell, Clearing Path for Warsh Confirmation

Apr 24, 2026

The Department of Justice dropped its criminal investigation into Federal Reserve Chair Jerome Powell on April 24, 2026, just weeks before his term expires on May 15, referring the matter concerning cost overruns in a Fed building project to the Fed's inspector general instead. The move clears the path for Senate confirmation of Kevin Warsh, President Trump's crypto-friendly nominee chosen to remedy what Trump views as excessively high interest rates under Powell. Republican Senator Thom Tillis had promised to block Warsh's confirmation while the investigation continued, but now pledges to vote yes, sending prediction market odds for Warsh's confirmation by May 15 soaring from 30% to over 80%. Democratic Senator Elizabeth Warren calls the DOJ announcement a politically coordinated attempt to install Warsh and give Trump greater influence over monetary policy and crypto regulation.

DOJ Investigation Dropped and Warsh Confirmation Path

▪Kevin Warsh is President Donald Trump's nominee to replace Jerome Powell as Federal Reserve Chair.
▪Kalshi's prediction betting on Kevin Warsh's confirmation before May 15 shot up from about 30% odds to more than 80% when news of the dropped investigation emerged.
▪The U.S. Department of Justice dropped a criminal investigation of Federal Reserve Chair Jerome Powell on Friday, April 24, 2026.
▪Kevin Warsh appeared in a Senate confirmation hearing during the week of April 20, 2026.
▪Jerome Powell's term as Federal Reserve Chair expires on May 15, 2026.

Political Maneuvering and Senate Dynamics

▪Senator Elizabeth Warren is the ranking Democrat on the Senate Banking Committee considering Kevin Warsh's nomination.
▪Republican Senator Thom Tillis promised to block Kevin Warsh's confirmation as long as the DOJ pressed an investigation against Jerome Powell.
▪Senator Thom Tillis said he would vote yes on Kevin Warsh once the DOJ drops their investigation into Jerome Powell.
▪President Donald Trump relentlessly blamed Jerome Powell for maintaining overly high U.S. interest rates.
▪President Donald Trump chose Kevin Warsh to remedy what Trump viewed as overly high U.S. interest rates.
▪The Trump administration is pursuing Fed Governor Lisa Cook in court.
▪Senator Elizabeth Warren said the DOJ announcement was an attempt to clear the path for Senate Republicans to install Kevin Warsh as Fed chair.

Implications for Federal Reserve Independence and Crypto Policy

▪U.S. Attorney Jeanine Pirro said she will not hesitate to restart a criminal investigation into Jerome Powell should the facts warrant doing so.
▪Kevin Warsh insisted during his Senate confirmation hearing that he would act independently of White House direction.