Story perspectives

DOJ Closes Powell Probe, Clearing Path for Warsh Nomination

4/25/2026

Summary

Story summary

The Justice Department closed its probe into Fed Chair Jerome Powell after Judge James Boasberg found no evidence, shifting oversight to Fed’s inspector general.
The closure removed the obstacle that blocked Sen. Thom Tillis from backing President Donald Trump’s Fed chair nominee Kevin Warsh.
Kevin Warsh told the Senate Banking Committee President Donald Trump never asked him to commit to any interest-rate decision, prompting Democratic senators to demand financial-holding transparency.

History

Historical Context

In August 1979 President Jimmy Carter named Paul Volcker Fed chair, and the Senate Banking Committee approved him 71-30 amid soaring inflation; an Inspector General later flagged a $2 billion accounting gap, prompting congressional scrutiny. That precedent of IG reviews resurfaced when Judge James Boasberg cleared Jerome Powell’s 2018-2022 tenure, reinforcing Senate influence exemplified by Thom Tillis.

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Story summary

The Justice Department closed its probe into Fed Chair Jerome Powell after Judge James Boasberg found no evidence, shifting oversight to Fed’s inspector general.
The closure removed the obstacle that blocked Sen. Thom Tillis from backing President Donald Trump’s Fed chair nominee Kevin Warsh.
Kevin Warsh told the Senate Banking Committee President Donald Trump never asked him to commit to any interest-rate decision, prompting Democratic senators to demand financial-holding transparency.

1 / 2