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Justice Dept Clears Powell, Fed Holds Rates Steady

4/29/2026

41 3 Full Breakdown

Center

Powell Investigation Closed

The Justice Department closed its criminal investigation of Fed Chair Jerome Powell, clearing a barrier for Kevin Warsh’s confirmation.
The Federal Reserve kept its benchmark interest rate in the 3.5%-3.75% range at the April 2026 policy meeting.
Powell may stay on the Board until January 2028, the first former chair since 1948.
March inflation rose to 3.3% YoY as Brent crude jumped 50% since the Iran war.

Left

Warsh Confirmation

Senate Democrats warned that Kevin Warsh could serve as President Donald Trump’s “sock puppet” at the Federal Reserve.
Senate Banking Committee will clear Kevin Warsh for a Senate vote, moving him toward Fed chair confirmation on May 15.
President Donald Trump urged lower borrowing costs and expects Warsh to deliver interest-rate cuts.
Traders say the Fed is unlikely to cut rates this year, calling the path fraught.

Blindspot

Blindspot

Center coverage emphasized the Department of Justice closing its criminal probe into Jerome Powell, removing a hurdle to Kevin Warsh’s confirmation.
Left coverage did not include that detail, instead highlighting Senate Democrats’ sock-puppet worries, Trump’s rate-cut push, and traders’ expectations of no cuts this year.

History

Historical Context

President Jimmy Carter named Paul Volcker Fed chair in August 1979 to end double-digit inflation; his actions pushed the federal funds rate to a 20 % peak in June 1981 and cut inflation from 14.8 % in March 1980 to below 3 % by 1983. Kevin Warsh’s 2026 Senate confirmation revives the partisan battles over monetary policy that marked Volcker’s era.

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Powell Investigation Closed

The Justice Department closed its criminal investigation of Fed Chair Jerome Powell, clearing a barrier for Kevin Warsh’s confirmation.
The Federal Reserve kept its benchmark interest rate in the 3.5%-3.75% range at the April 2026 policy meeting.
Powell may stay on the Board until January 2028, the first former chair since 1948.
March inflation rose to 3.3% YoY as Brent crude jumped 50% since the Iran war.

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