Story perspectives

DOJ Drops Powell Probe, Warsh Confirmation Scheduled, Yields Fall

4/25/2026

Summary

DOJ Drops Probe

On April 24, 2026, the DOJ dropped its criminal probe of Federal Reserve (Fed) Chair Jerome Powell over a $2.5 billion renovation.
U.S. Attorney Jeanine Pirro closed the case, sent it to Fed’s Inspector General, and said she could restart it if needed.
Senator Thom Tillis (R-NC) lifted his hold on Kevin Warsh’s confirmation, so the Senate set a vote for April 29, 2026, after which yields fell to 3.78 % and odds rose to about 86 %.

Summary

Fed Holds Rates

Fed voted 11-1 to keep rates unchanged and appointed Fed Governor Michelle Warsh to replace Fed Governor Stephen Miran.
Treasury Secretary Scott Bessent said he would understand a Fed pause for clarity.
Fed Governor Christopher Waller warned rising inflation could keep rates steady despite 4.3% unemployment.
Wall Street futures see the next rate cut no earlier than October 2027.
Fed Governor Michelle Warsh, who said AI would enable cuts, now says impact is uncertain.

History

Historical Context

After the 2008 crisis forced the Fed to invoke emergency authority—authorizing over $1 trillion in loans and the $700 billion TARP signed on Oct 3, 2008—Congress and regulators have repeatedly wrestled with Fed independence. In April 2026, DOJ U.S. Attorney Jeanine Pirro dismissed a $2.5 billion renovation probe, reviving Senate scrutiny of former governor Kevin Warsh and underscoring the enduring tension between political oversight and monetary autonomy.

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DOJ Drops Probe

On April 24, 2026, the DOJ dropped its criminal probe of Federal Reserve (Fed) Chair Jerome Powell over a $2.5 billion renovation.
U.S. Attorney Jeanine Pirro closed the case, sent it to Fed’s Inspector General, and said she could restart it if needed.
Senator Thom Tillis (R-NC) lifted his hold on Kevin Warsh’s confirmation, so the Senate set a vote for April 29, 2026, after which yields fell to 3.78 % and odds rose to about 86 %.

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