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DOJ Probe Closed as Fed Holds Rates, Warsh Advances

4/30/2026

25 2 Full Breakdown

Summary

Story summary

U.S. Attorney Jeanine Pirro said the DOJ closed its probe of the Federal Reserve’s (Fed) headquarters renovation, but could reopen it.
The Fed kept its benchmark rate at 3.5%-3.75% while Powell said he will stay a governor when term ends May 15 and warned actions threaten Fed independence.
The Senate Banking Committee advanced President Donald Trump’s nominee Kevin Warsh with a 13-11 vote, prompting Fed presidents to dissent over rate cuts.

History

Historical Context

In July 1979 President Carter appointed Paul Volcker as Fed chair, and he lifted the federal-funds rate to a 20 % peak by 1981, driving inflation from 13.5 % to 3.2 % by 1983. The 1978 Humphrey-Hawkins Act began congressional reporting, reinforcing independence protected by the 1951 Accord. Today the DOJ’s closure of a Fed-renovation probe, announced by U.S. Attorney Jeanine Pirro, revives that tension between politics and monetary autonomy.

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Story summary

U.S. Attorney Jeanine Pirro said the DOJ closed its probe of the Federal Reserve’s (Fed) headquarters renovation, but could reopen it.
The Fed kept its benchmark rate at 3.5%-3.75% while Powell said he will stay a governor when term ends May 15 and warned actions threaten Fed independence.
The Senate Banking Committee advanced President Donald Trump’s nominee Kevin Warsh with a 13-11 vote, prompting Fed presidents to dissent over rate cuts.

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