Story perspectives

DOJ Ends Fed Probe, Clears Warsh Path to Chair

4/26/2026

Summary

Story summary

The Justice Department’s closure of the probe into Fed Chair Jerome Powell removes the obstacle to President Donald Trump’s nominee Kevin Warsh becoming Fed chair before May 15.
Sen. Thom Tillis, who blocked Warsh’s nomination since January over independence concerns, said he will now support confirming him after the DOJ ended the probe.
The investigation focused on $2.5 billion cost overruns in the Fed’s headquarters renovation.

History

Historical Context

After the 2008 crisis, Congress enacted the Dodd-Frank Act, signed by President Barack Obama on July 21 2010, which created the Financial Stability Oversight Council and expanded Fed reporting requirements. Republican opposition grew, and the Trump administration rolled back parts in 2018. The Justice Department’s recent $2.5 billion probe closure now clears the way for Trump’s Fed nominee Kevin Warsh, who will inherit the Act’s transparency requirements.

1 of 2

Story summary

The Justice Department’s closure of the probe into Fed Chair Jerome Powell removes the obstacle to President Donald Trump’s nominee Kevin Warsh becoming Fed chair before May 15.
Sen. Thom Tillis, who blocked Warsh’s nomination since January over independence concerns, said he will now support confirming him after the DOJ ended the probe.
The investigation focused on $2.5 billion cost overruns in the Fed’s headquarters renovation.

1 / 2