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Warsh Vote Set for April 29; DOJ Drops Powell Probe

4/26/2026

Summary

Warsh Vote

Kevin Warsh’s vote to become Federal Reserve (Fed) chairman is set for April 29, 2026.
Banking, Housing, and Urban Affairs Committee issued Friday after Department of Justice (DOJ) dropped investigation of Fed Chair Jerome Powell.
The probe focused on Fed renovations costing $2.5 billion, a figure President Donald Trump inflated to $4 billion.
U.S. Attorney Jeanine Pirro said Inspector General will conduct inquiry.
She added DOJ may restart probe if IG report justifies it.

Summary

Fed Holds Rates

The Federal Reserve (Fed) committee voted 11-1 in March to keep rates unchanged, with Warsh replacing dissenting voter Stephen Miran.
Futures pricing shows investors expect no Fed rate cut until October 2027.
Treasury Secretary Scott Bessent said he would understand if the Fed waits for clarity before cutting rates.
Fed Governor Christopher Waller warned rising inflation could force the Fed to stand pat.

Summary

DOJ Ends Probe

DOJ ended the probe of Fed Chair Jerome Powell April 24, 2026, sending gold to $4,723 per ounce after lows near $4,689.
$39 trillion debt, with Congressional Budget Office (CBO) projecting 156 % of GDP by 2055, caps real-yield growth and supports gold demand.
Fed’s $6.7 trillion balance sheet (April 15, 2026) and Kevin Warsh’s plan to sell Treasuries would push yields, while Iran-driven Strait of Hormuz shutdown raised inflation from 2.4 % to 3.3%, adding gold pressure.

History

Historical Context

During the 2008 crisis the Fed, chaired by Ben Bernanke, began buying $600 billion of agency mortgage-backed securities, expanding to a $2.1-trillion balance-sheet peak by June 2010, while Treasury Secretary Henry Paulson oversaw the $700 billion TARP bailout. That oversight now frames scrutiny of Kevin Warsh’s proposed $2.5 billion Fed renovation plan, raising fears of market volatility and inflation.

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Warsh Vote

Kevin Warsh’s vote to become Federal Reserve (Fed) chairman is set for April 29, 2026.
Banking, Housing, and Urban Affairs Committee issued Friday after Department of Justice (DOJ) dropped investigation of Fed Chair Jerome Powell.
The probe focused on Fed renovations costing $2.5 billion, a figure President Donald Trump inflated to $4 billion.
U.S. Attorney Jeanine Pirro said Inspector General will conduct inquiry.
She added DOJ may restart probe if IG report justifies it.

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